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Sort of. There's the Foreign Earned Income exclusion that allows you to deduct $100,800.00. There are also deductions for housing costs if you live overseas.
by tallanvor 12y ago
Sort of. There's the Foreign Earned Income exclusion that allows you to deduct $100,800.00. There are also deductions for housing costs if you live overseas. If your income exceeds that (and other deductions), then you may have have to pay taxes on the excess income. This depends on whether or not the US has a tax treaty with the foreign country and which country has higher tax rates.
In the end, it means you have to earn quite a bit to have to pay any US taxes when living overseas, but it can happen. The big hassle is having to file returns no matter what. It can end up being pretty complex.
- kalleboo 12y ago> The big hassle is having to file returns no matter what There's also the problem of the USA imposing FATCA reporting requirements on foreign banks who have American customers. This can make it a lot more work for an American to sign up for a foreign bank account, and reportedly some banks are outright refusing any customer who walks in with an American passport because they don't want to open their books to a foreign entity.