U.S. Citizens and Resident Aliens AbroadInternal Revenue... 2025

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The US is one of the few countries in the world that taxes citizens regardless of where they live and work. Because of this, when a US citizen moves to another country with an income tax, they will have to report their income to both governments and face double taxation. This applies to accidental Americans as well.
Buying property overseas doesnt automatically trigger a US tax reporting requirement. Selling foreign property will result in a capital gain or loss that is reportable on your US tax return. Buying or selling foreign property may create tax obligations in your country of residence.
Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits.
Resident aliens If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U.S. tax return. You must report these amounts whether from sources within or outside the United States.
If you are a U.S. citizen or resident living or traveling outside the United States, you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States.

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However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($107,600 for 2020, $108,700 for 2021, $112,000 for 2022, and $120,000 for 2023). In addition, you can exclude or deduct certain foreign housing amounts.
Key Takeaways. As a US Person, you have to file a US federal tax return to report your worldwide income regardless of where you live and work. The only way to avoid submitting a US tax return is to renounce your US citizenship. Even doing so doesnt always ensure you are out of the US tax system forever.

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