Originally Posted by
FLowpayFO
I am in the same boat with both EU and US citizenship. So if I make $100k a year in my EU country, I will be taxed from that EU country AND the US? If thats the case I'm guessing that would leave me with 30% of my income after taxes?
And how would the US find out about what you made in your other country?
Possibility 1: Yes, both. Will be taxed in USA, and probably state and municipal taxes. And taxes in the EU country.
Possibility 2: No, if for some reason that EU country does not tax it's citizens. I don't know of any, by the way. Sometimes contracts are written that the airline will pay any local taxes (my contract is done that way).
Possibility 3: Sure, don't claim the money you earned in an EU country to the IRS. The IRS will NEVER find out. Go for it !!! It's not like those are first world countries doing international banking (and paper trails).
Possibility 4: No, if you renounce your USA citizenship, and stop paying taxes and filing tax forms in the USA. Problem solved. Only pay EU member country taxes (I'd bet that the tax rate in ANY EU country is higher than the USA, by the way).
Possibility 5: No, if you meet all the requirements of 330 days abroad / residency abroad while earning foreign earned income. Then, tax excluded to $91,500 for 2010. You still must file USA taxes every year.