Do U.S. citizens need to file tax returns while on foreign assignments?
Yes. U.S citizens and resident aliens are subject to tax in the U.S. on their worldwide income, regardless of whether the income is derived from foreign or domestic sources. Most other countries impose taxes based on residency in that country or on locally sourced income of nonresidents. The U.S. federal income tax is imposed on an individual’s worldwide income without regard to residence.
