Thanks for the info, it's interesting for sure how that could work out. I would rid of my US citizenship before giving up my EU, but I'll worry about that if I cross that road. Only problem I see is if I do try to avoid US taxes if abroad, I fly into the US for an overnight and I get caught up in customs over tax issues.
Originally Posted by
TonyWilliams
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.