The U.S. tax system applies to income regardless of where in the world it is earned. That means Americans who are abroad, either for private-sector jobs or as members of the armed forces, still must pay taxes to Uncle Sam.
However, the IRS does recognize the special circumstances of these taxpayers and makes some allowances.
Employees abroad—U.S. citizens (or resident aliens) who live outside the United States are subject to the same general filing requirements as taxpayers within America’s borders. That means the IRS wants its rightful part of the paycheck you bring home to your overseas abode.
But you may be able to limit the amount that returns to the U.S. Treasury by taking advantage ...