4 ms·

> Always wondered why US citizens do not make a bigger deal out of this. It affects a relatively small set of people (those with substantial income who live ab

> Always wondered why US citizens do not make a bigger deal out of this. It affects a relatively small set of people (those with substantial income who live abroad in a lower-tax jurisdiction), and it'd be politically difficult to change. > I assume there are minimum income thresholds but still... None other than the normal thresholds for income taxes. The one ameliorating factor is the foreign tax credit: you get a credit for taxes you've already paid to your local jurisdiction. So, in the likely case that you live somewhere with higher taxes, you won't pay any net US income tax. If you live somewhere with lower taxes, you'll pay the difference to the US.

loeg 6y ago
> > I assume there are minimum income thresholds but still... > None other than the normal thresholds for income taxes. That's not right. There is a specific foreign earned income exclusion: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore... It's around $100k (increasing with inflation) for individuals. > However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($103,900 for 2018, $105,900 for 2019, $107,600 for 2020, and $108,700 for 2021).
- JoshTriplett 6y ago
  I stand corrected; thank you for the clarification.
xyzzyz 6y ago
> None other than the normal thresholds for income taxes. That’s false. First $100k of foreign income is exempt.