Have a Tax Question? Ask a Tax Expert
Hello and thank you for using Just Answer,A US citizen is liable for reporting all their worldwide income. Amendment XIV, Section 1, Clause 1 of the U.S. Constitution directs that all persons born in the United States are U.S. citizens. This is the case regardless of the tax or immigration status of a person’s parents.This means that you as a US citizen would be required to file a US tax return every year and report your income no matter if you were in the US or not. You would be allowed some areas of tax relief.
Your foreign earned income would be excluded (up to limits) and you would not pay US tax on those.
Then there is the foreign tax credit.
It allows for a credit on taxes paid in another country on the same income that is taxable to the US.
Your foreign accounts (not in the US) would need to be reported too if more then $10,000 in them. As well as tax on the interest earned.
Thnaks , what if I wanted to begin looking into this issue seriously? What can you do for me please.
If you mean filing past tax returns I would be happy to explain how many years back you would be required to go but I can not complete the returns for you. This is a Question and Answer site.
ok, how many years do I need to go back , and would appreciate to have the website where I can visit.
The IRS would expect you to file the past 7 years returns. http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad---Filing-Requirements
The url is to the IRS page that explains for US citizens abroad.
thank you , any other things I should know ?
I would strongly suggest you seek a professional to assist
The rules for the credit and exclusion are exact.
Any Recommendations? I have never been to US since I was 1 year old and never get back since then
I'm 46 years old now
I would think that an international tax company is available. You may wish to try KPMG.
thanks Robin thank you very much
Thurl has their locations in SA
I really enjoyed working with you – please feel free to request me again when you come back to ask another question.
Your positive rating is always thanks enough.
Thank you , likewise my dear, i Will