Abandoning US Citizenship or Green Card? Here is Something You Should Know

If you are a U.S. citizen or a permanent U.S. resident, you are taxed on your worldwide income. It does not matter where you live, where the income is earned, or where else you might pay tax. Many US citizens and Green Card holders are finding themselves in a situation where they are working abroad US but paying tax on their global income in the US. You may claim foreign earned income exclusion and foreign tax credits on your U.S.

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U.S. Citizens and Resident Aliens Living Abroad: Filing Requirements

Do I Have to File a Tax Return?

Under U.S. tax law, all of the citizens and residents of US are required to file a tax return and report their worldwide income to the IRS, no matter where they live. Even if they have no tax liability, they are required to file a tax return provided their income exceeds certain minimal thresholds. The U.S. has treaties with many foreign countries that will reduce or even eliminate actual owed tax.

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