Do You Need To File Taxes In The Us If You Live In Europe As A Dual Citizen Working For A Foreign

Do US Dual citizens pay taxes on income earned abroad?

If are a US citizen, the rule is as follows - even if you are residing outside the United States or have dual citizenship, you are subject to U.S. federal income tax and reporting on your worldwide income. Citizens living abroad must annually report all of their income to the IRS, just as they did prior to moving abroad, whether the income is from U.S. sources or foreign sources and whether or not the income is taxed or reported in the new country of residence. This system of citizenship-based taxation (rather than residence-based taxation) is unique to the United States (the only other country that taxes its citizens in this manner is Eritrea).For some further pointers on this topic, please see our recent article on Money 101 regarding common U.S. expat tax myths:http://time.com/money/4298634/ex...That being said, the good news is both U.S. domestic tax law and U.S. tax treaties contain a number of provisions that are designed to prevent “double taxation,” or taxation on the same income in both countries (e.g., the U.S. and the new country of residence). Domestic law provisions include the foreign earned income exclusion (for 2016, you can exclude up to $101,300 of your foreign earned income), the foreign housing exclusion, and the foreign tax credit. These provisions, in many cases, can reduce or even eliminate the U.S. federal income tax that would otherwise be due by you. Keep in mind, however, that even if no U.S. tax is owed, a U.S. tax return still generally must be filed in order to benefit from these provisions, and the failure to do so can result in severe penalties.In order to escape the U.S. tax net, you may consider renouncing your citizenship, but this involves a number of unique tax issues. Please see our recent article on CNBC US Home for an analysis of these issues.http://www.cnbc.com/2016/05/17/e...

How am I taxed if I am a US citizen, working on 1099 for a company in Europe, which deposits every month to my US bank account, and I live in different countries overseas so I never spend more than 1 month per year in the US. Are my taxes the same?

US citizens and LPRs are one of the few groups of people on this planet that are taxed on their worldwide income, even if they reside abroad. If you pay taxes abroad on any of this money then you may be able to claim a foreign tax credit.What some people may do is to setup a foreign corporation and remit money into that instead. However, you then are technically required to perform a FATCA filing on any income derived from this entity where you have a controlling stake in this business.This is part of the reason why many US citizens in recent years have gained alternative nationality and subsequently relinquished their US citizenship. See here for more details: Record Number of People Renounced Their U.S. Citizenship in 2016Note: I am not an accountant and this does not construe legal or accounting advice.

I have a dual citizenship (Singapore and US). Singapore doesn't allow dual citizenships past the age of 21. Should I leave to the US and keep both?

Singapore does not allow dual citizenship beyond 21. Irrespective of where you will live the rest of your life, you cannot keep both legally. Some countries (immigration) have the habit of chopping entry and exit next to each other. If you traval out of singapore and come back without any immigration marks in your Singapore passport that is sufficient to trigger suspicion. So, using one passport here and the other passport there will get you caught sooner or later.If you have made up your mind as to where you want to live, then choose one accordingly. My advise is to keep US citizenship if you will live in US or keep Singapore citizenship if you will live anywhere else. This is for your own security, tax matters, etc. Only downside of keeping Singapore citizenship is NS.All these are based on my understanding. Consult an immigration attorney for legal advise.

If I am a US citizen, but work for and am paid by a foreign company do I still have to pay US income taxes on money earned ?

Because you are a US citizen, the rule is as follows - even if you are residing outside the United States, you are subject to U.S. federal income tax and reporting on your worldwide income. This includes income paid to you as compensation from a foreign company. Citizens, even those living and/or working abroad must annually report all of their income to the IRS, whether the income is from U.S. sources or foreign sources and whether or not the income is taxed or reported in the new country of residence. This system of citizenship-based taxation (rather than residence-based taxation) is unique to the United States (the only other country that taxes its citizens in this manner is Eritrea).For some further pointers on this topic, please see our recent article on Money 101 regarding common U.S. expat tax myths:http://time.com/money/4298634/ex...That being said, the good news is both U.S. domestic tax law and U.S. tax treaties contain a number of provisions that are designed to prevent “double taxation,” or taxation on the same income in both countries (e.g., the U.S. and the new country of residence). Domestic law provisions include the foreign earned income exclusion (for 2016, you can exclude up to $101,300 of your foreign earned income), the foreign housing exclusion, and the foreign tax credit. These provisions, in many cases, can reduce or even eliminate the U.S. federal income tax that would otherwise be due by you. Keep in mind, however, that even if no U.S. tax is owed, a U.S. tax return still generally must be filed in order to benefit from these provisions, and the failure to do so can result in severe penalties.In order to escape the U.S. tax net, you may consider renouncing your citizenship, but this involves a number of unique tax issues. Please see our recent article on CNBC US Home for an analysis of these issues.http://www.cnbc.com/2016/05/17/e...

I am a US citizen who has never lived in the US and never paid US taxes. I have been working for 15 years. Am I just putting off a very big bill?

You’re not “putting off” a very big bill, you may already have a very big bill that is accruing interest and penalties. As a US citizen, you’re required to file returns every year, regardless of where you live. Depending on the amount of your income, you could potentially already owe back taxes, interest and penalties.As a rule, ALL US Citizens must pay taxes on ALL global income regardless of whether they live outside the US (or have never lived in the US).However, US citizens who satisfy the requirements for “working and residing outside the US” can take advantage of the following tax breaks:Foreign Earned Income Exclusion (up to $101,300 in income is not taxed)Foreign Housing Expense ExclusionForeign Tax Credit (any US taxes you owe are offset by any taxes you paid to a foreign government)Note that the Foreign Earned Income Exclusion increases every year, so going back six years to 2010 the exclusion amount was only $91,500. There’s a great explanation of this, along with the rates for all years going back to 1998, here:How to Exclude Foreign Wages from Your U.S. TaxesSo, if you made less than the exclusion amount in each year, you should be OK. However, I’d definitely talk to an accountant just to be sure.If you’re above the exclusion amount, you still may have zero tax owed to the US based on the housing exclusion, foreign tax credit and other deductions/credits you may be eligible for.Also, keep an eye on the news from congress. The Foreign Earned Income Exclusion is often brought up as an “unfair loophole” and threatened with repeal. If it is repealed, you’d be required to pay taxes on all your income, starting from $0, even if you live outside the US.