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That's correct, American citizens are required to pay tax to the IRS regardless of their residency. However, you can deduct something like $106,000 from your ye
by ckolkey 5y ago
That's correct, American citizens are required to pay tax to the IRS regardless of their residency. However, you can deduct something like $106,000 from your yearly income if it's already been taxed, to avoid double-taxation of income.
- gspr 5y agoYes, around 106k USD, but this exemption applies only to EARNED income. The definition of earned income is quite narrow. This can cause a massive headache. The way the US deals with taxation abroad is a travesty. I for one will be renouncing my citizenship because of it. Few countries deal with emigration in a perfectly hassle-free way, but the US makes living a life in any other country impossible if at any point you rely on income that isn't bog standard salary.