{"id":3598,"date":"2025-09-12T09:31:37","date_gmt":"2025-09-12T09:31:37","guid":{"rendered":"https:\/\/relocate.me\/blog\/?p=3598"},"modified":"2025-09-12T09:48:47","modified_gmt":"2025-09-12T09:48:47","slug":"paying-us-taxes-abroad","status":"publish","type":"post","link":"https:\/\/relocate.me\/blog\/money-and-taxes\/paying-us-taxes-abroad\/","title":{"rendered":"Paying Taxes for U.S. Citizens Living Outside the U.S."},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>\n

Living abroad can be a transformative experience. You can discover new cultures, new opportunities, and even better weather. But one thing doesn\u2019t change no matter where you go: paying your U.S. taxes. Additionally, you\u2019re likely to also pay taxes on the government of the country you\u2019re going to move to.<\/p>\n

Without proper guidance, you\u2019re likely to be double-taxed by both countries which is a very expensive situation to be involved in. This is quite a common dilemma for US expats and even US citizens planning to move to another country.<\/p>\n

This blog is going to dive into the tax obligations of US citizens and Green Card holders when they move and live abroad. Plus how to avoid double taxation and make the most out of your stay abroad.<\/p>\n

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Do U.S. Citizens Abroad Still Have to Pay Taxes?<\/h2>\n

Yes, they do. Living overseas will not stop you from reporting and paying your taxes to the Internal Revenue Service (IRS) because you are taxed on your worldwide income.<\/p>\n

Therefore, whether your income is derived from work, business ownership, rent, or investments, you must report your income to the IRS on a tax return, even if you already pay taxes in another country like Ireland.<\/p>\n

To further reduce or eliminate U.S. tax on some types of income, you should explore whether your country has an active<\/span> tax treaty with the United States<\/span>. These treaties often allow reduced withholding rates or exemptions for income like pensions, interest, and dividends. A comprehensive list is available on the<\/span> IRS page for U.S. income tax treaties<\/a>, and Publication 901 offers deeper insight into how these apply to your specific country.<\/span><\/p>\n<\/div>\n

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Avoidance of Double Taxation<\/h2>\n

Not-so-good news: The IRS does not want you taxed on the same income twice. You have two main tools to avoid double taxation<\/b><\/a>:<\/p>\n

1. Foreign Earned Income Exclusion (FEIE)<\/h3>\n

As you reside and work outside the United States, you might be able to exclude up to $130,000 of your foreign income from U.S. tax in 2025. Visit the<\/span> IRS Foreign Earned Income Exclusion page<\/a> for details and qualification requirements.<\/span><\/p>\n

You qualify if you satisfy either:<\/p>\n