Tax FAQs:

International Tax Law FAQs

Q.When returning to the United States as a US citizen from a foreign country, am I subject to any taxes?

  1. Duty and internal revenue tax are required to be paid on articles acquired abroad. US citizens are allowed to bring back $400 worth of merchandise duty free. If you are returning directly from a Caribbean Basin Economy Recovery Act country, the limited value of duty free merchandise allowed is raised to $600. The next $1,000 worth of items you bring back are dutiable at a flat 10% rate.

Q. If I am a US citizen but have been living outside the United States, must I file a tax return?

  1. Yes. Just because you have been living outside of the United States, you are not relieved of having to file a tax return. You may, however, be entitled to various deductions, exclusions and credits under the US tax laws, international tax treaties and conventions between the United States and a number of foreign countries.

Q.If I work outside the United States, do I still need to file a tax return?

  1. A.Yes. Working outside of the United States does not mean that you are exempt from having to file a tax return. You may be entitled to various deductions, exclusions and credits under the US tax laws, international tax treaties and conventions between the United States and other countries.

Q.If I am employed outside of the United States, do I have to report income earned outside the US on my tax return?

  1. A.US citizens must report their worldwide income on their federal income tax returns. You may be required to pay tax on this income earned abroad.

Q.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?

  1. A.During the filing period, you can usually obtain the necessary federal income tax forms from the nearest US embassy or Consulate. In addition, the IRS has put together a package of forms and instructions called Publication 776 for US citizens living abroad.