I am a U.S. citizen living overseas with no U.S. income but substantial foreign income. Must I file a U.S. tax return?
Yes. U.S. citizens must report their worldwide income on their U.S. tax returns. If you paid income taxes to a foreign country, you may qualify for a foreign tax credit. IRS Publication 514 “Foreign Tax Credit for Individuals” explains how to calculate this credit. You may also qualify for a foreign earned income exclusion of up to $85,700 for 2007. Qualification requirements and forms to be completed are explained in IRS Publication 54 “Tax Guide for U.S. Citizens and Resident Aliens Abroad”.
Related Questions
- I am a US citizen living abroad. Where can I find forms, information and instructions for filing my US tax return while in a foreign country?
- I am a U.S. citizen living overseas with no U.S. income but substantial foreign income. Must I file a U.S. tax return?
- Does an Australian PR living overseas have to file an Australian tax return?
