Am I required to pay U.S. income tax on money earned out of the country?

If I move out of the U.S. for 5 years & earn 2 million dollars, do I have to pay U.S. income tax on that 2 million when I return home to the U.S.?

The money would be earned in the foreign country in which I would be living and working.

8 Answers

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  • Judy
    Lv 7
    3 months ago
    Favorite Answer

    If you're a US citizen or green card holder, you must file a tax return on it. Your US tax might be reduced by any foreign tax you paid.

  • RICK
    Lv 7
    3 months ago

    You are required to file every year

    You are required to pay taxes due every year (taxes paid to other governments lowers your US taxes)

    If you waited until you returned to the US you would owe not only the taxes due but a lot of penalties and interest also. That might even be considered tax fraud which could result in jail time

  • 3 months ago

    Yes you are required to pay a certain amount as tax for the income earned abroad

  • 3 months ago

    If you did no set foot in the US at all during the years you made that money, you likely owe nothing. You are required to file a tax return every year as a US citizen though.

    • RICK
      Lv 7
      3 months agoReport

      Location has zero to do with it
      I personally know people who have not been in the US for at least 30 years and owe taxes every year

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  • 3 months ago

    You are required to report it, every year. You are not allowed to wait until you return home. If you report it correctly and on time, then you may or may not be able to avoid paying tax on it because of foreign earned income exclusion and foreign taxes paid credit.

    If you don't report it, then you don't get the credit or exclusion, so you will have to pay.

    If you wait until you return home, then you will owe penalties and interest.

  • Murzy
    Lv 7
    3 months ago

    yes you will pay tax on any earned income

  • 3 months ago

    If you are a US Citizen or Resident Alien, yes you do but will get a credit for income tax paid in the country where you earned the income.

  • 3 months ago

    you need to get off the COMPUTER JUST PAY FOR IT JUST GET OFF THE COMPUTER!!! OFF!!!!! 2 MILLION NOTHING!!! I DONT FUCING CARE SYU STUPID WITCH

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