3 ms·
ianal but my understanding is that americans do have to pay us income tax on worldwide income, but they can deduct taxes paid to a local government. in other w
by elsewhen 12y ago
ianal but my understanding is that americans do have to pay us income tax on worldwide income, but they can deduct taxes paid to a local government. in other words, if you would have had to pay $100 in taxes to the us, but paid $75 to a local government, then you would only pay $25 to the us. if your taxes in the foreign country exceed the amount you would have had to pay in the us, then you don't owe the us anything.
- tbyehl 12y agoBetween the Foreign Tax Credit and the Foreign Earned Income Exclusion... You'd need a fair amount of US income or very low taxes in your new home country to generate a US tax burden. But. You still have to file. http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Tax-Credit http://www.irs.gov/Individuals/International-Taxpayers/Forei... http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion http://www.irs.gov/Individuals/International-Taxpayers/Forei...