I already paid tax in my country of residence. Do I have to pay to the United States too?

If you are still a U.S. citizen or green card holder living abroad, you are still required to file a U.S. tax return if your income exceeds the filing threshold, which is generally equivalent to the standard deduction for your filing status.

Whether you ultimately have any U.S. income tax liability depends on your ability to utilize credits and deductions specifically designed to alleviate the risk of being taxed twice when you are also paying taxes overseas. Often expats will owe no tax if working in a country with a higher tax rate than the U.S., but the rules are complex depending on the country where you live and the foreign tax credit limitation.

So, make sure to check with your expat tax advisor about which foreign taxes you can use to maximize your foreign tax credit.

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