2 ms·
Not so if you're an American. You need to keep filing each year. The good news is that the US has tax treaties with most developed countries, so as long as yo
by byoung2 15y ago
Not so if you're an American. You need to keep filing each year. The good news is that the US has tax treaties with most developed countries, so as long as you're paying as much tax as you would if you were working in the US, you won't have to send a check to the IRS. For example, if the tax rate in your new country is 40% and you would be in the 35% bracket in the US, you will owe no US taxes.
The IRS website suggests that there doesn't need to be a tax treaty if you live in another country for a full tax year. Even if I live in a tax free country for a full tax year or 330 days out of any 12 consecutive months, the first $90k+ are tax free. I think that is reasonable, given all that being an American citizen or resident will benefit me even while abroad (embassies, defense, etc).
http://www.irs.gov/businesses/small/international/article/0,,id=96817,00.html http://www.irs.gov/businesses/small/international/article/0,...