If I worked for a foreign company in a foreign country, do I still need to pay tax in US since I need to pay tax in the foreign country?
Tax Professional Answers
With regards to your message, yes, you will have to file a US return every year (regardless of whether you are working in the US or not). However, just because you have to file a US return, does not mean you will have to pay anything to the US. Fortunately, there are a number of exclusions and credits in place (for expats) which limit dual taxation.
One of the largest exclusions is the Foreign Earned Income Exclusion. With the FEIE, the first 97K (for the 2013 filing) of income is exempt from tax in the US. If you make under this level, you generally do not owe anything to the US.
Also, the US has several tax treaties in place with other countries. If you are living in a tax treaty country, then your chances of dual taxation are slim as well.
I hope this helps! Please feel free to reach me if you have any further questions.
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