Quote:
Originally posted by Tyrone Slothrop
That can't be right. If I'm a U.S. citizen resident in Italy, I pay Italian taxes on my income, but why would I pay U.S. taxes as well?
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Because the US taxes its citizens on a worldwide basis. You would get a foreign tax credit for foreigen income taxes paid, subject to the FTC limitation. In addition, certain income earned outside the US isn't subject to US tax. However, there are circumstances under which some portion of your income earned overseas would still be subject to tax in the US.
