Originally Posted by DanaT
Are you aware of how taxes on overseas income works? Are you willing to give me a TAX REFUND when I never paid taxes because the overseas tax credits and tax exclusions exceeds my tax liability and YOU OWE ME MONEY?
There is also a $95100 (for 2012) tax exclusion. This means the first $95k is tax exempt.
Now, onto an example. I have an acquaintance that lives in Switzerland. She is a dual citizen (USA and Swiss). One parent is each nationality (for those that dont think you can have dual citizenship, you are wrong). She has never lived a day of her life in the USA. She has only ever done small vacations to visit family. She has always lived in Switzerland. The US government (IRS) sent her a letter that she needs to be filing US taxes. Keep in mind she has never lived in the USA. Never received a benefit (no schooling, no anything) yet gets a letter that she has to file taxes.
I can tell you what the end is. She is in the process of renouncing USA citizenship. One would think that is easy, but the USA wants its tax money....
Hmm.. I also have a friend with dual citizenship(swiss/us). Only difference is he has lived and worked here for several years over the past 20 years.
Pretty sure he has never filed taxes when out of the country. I'll have to ask him.