US Tax Rules for Citizens Living Abroad

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Under American Citizen Tax Living Abroad are required to report their worldwide income for tax purposes, even if they reside abroad. Due to the citizenship-based taxation system, filing a US tax return is mandatory, regardless of residency status. However, tax obligations can be reduced through exemptions such as the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC). With proper tax planning and expert advice, you can ensure compliance with the rules and avoid penalties.