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> The equivalent law in the UK would mean that if you just moved 60 miles from the UK to France you'd have to pay tax twice. To my understanding, that's not ho
by InitialLastName 3y ago
> The equivalent law in the UK would mean that if you just moved 60 miles from the UK to France you'd have to pay tax twice.
To my understanding, that's not how the US taxes work. You have to file a tax return with the US, but you get a credit for the taxes you've paid to other countries [0] so you actually end up paying whichever tax is higher.
[0] https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit https://www.irs.gov/individuals/international-taxpayers/fore...
- ghaff 3y agoThat's correct. But it means even if you move from a high tax country/state to a low tax one (which may provide a very different level of services for the lower taxes--as is often the case with US states) you still get hit.
- jandrewrogers 3y agoThere is a significant degree of double taxation for overseas Americans, the credit only covers a subset of common cases. It is not uncommon to pay more taxes as an American overseas than you would pay to each country separately if you were only filing in one.
- nvarsj 3y agoWhile FTC helps with most things, you can still get knocked for stuff that doesn’t fit into the US tax code. Like stamp duty - you’re taxed in the UK when buying property, then taxed in the US when selling (you’re exempt in the UK on your primary property).