4 ms·

The $105k-ish number is just the amount of foreign income that is exempted (hence, upon which one would owe no taxes). Technically, anyone subject to US tax la

The $105k-ish number is just the amount of foreign income that is exempted (hence, upon which one would owe no taxes). Technically, anyone subject to US tax law is supposed to file a return every year, even if no tax is owed and no refund due. I could easily see IRS going after someone living abroad who had committed no real crime other than not filing a return.

yellow_postit 6y ago
And can’t forget about filing the FBAR to the Treasury Department.
- pmiller2 6y ago
  That, too, of course. There's a reason every time I've seen an American abroad ask a question about filing taxes that the answer is literally always "You need to find yourself a specialist accountant to help you with this."
fl0wenol 6y ago
One reason for that global reporting req is to account for capital gains in domestic trading accounts, or other transfers of property. This is not unique to the US, but other countries don't necessarily piggy-back this in your standard income tax filing. There are provisions to prevent double-taxing beyond the foreign income threshold because of treaties between the US and other countries. I'd speak to a professional at least the first time you file internationally.
- worik 6y ago
  What is unique to the USA is: charging citizens tax on money they earn when they live overseas and forcing overseas banks to hand over details, in some cases of non USA citizens, to USA IRS
  - kingosticks 6y ago
    To be a bit more specific, it's charging citizens tax on money they earn from overseas when they live overseas i.e. nothing to do with the US at all. Your comment could be interpreted to mean just taxing income from US investments while living abroad, for example (which would be more reasonable, but still over-reaching). Taxing worldwide income is also done by a few other countries but only the IRS has the bizarre extra reach into overseas banking data (that I know of, at least).

yellow_postit 6y ago

And can’t forget about filing the FBAR to the Treasury Department.

pmiller2 6y ago
That, too, of course. There's a reason every time I've seen an American abroad ask a question about filing taxes that the answer is literally always "You need to find yourself a specialist accountant to help you with this."

fl0wenol 6y ago

One reason for that global reporting req is to account for capital gains in domestic trading accounts, or other transfers of property. This is not unique to the US, but other countries don't necessarily piggy-back this in your standard income tax filing. There are provisions to prevent double-taxing beyond the foreign income threshold because of treaties between the US and other countries. I'd speak to a professional at least the first time you file internationally.

worik 6y ago
What is unique to the USA is: charging citizens tax on money they earn when they live overseas and forcing overseas banks to hand over details, in some cases of non USA citizens, to USA IRS
- kingosticks 6y ago
  To be a bit more specific, it's charging citizens tax on money they earn from overseas when they live overseas i.e. nothing to do with the US at all. Your comment could be interpreted to mean just taxing income from US investments while living abroad, for example (which would be more reasonable, but still over-reaching). Taxing worldwide income is also done by a few other countries but only the IRS has the bizarre extra reach into overseas banking data (that I know of, at least).