> The US is the only country in the world that taxes their own citizens
> on income earned overseas

You probably meant something quite different:
The US is the only country in the world that taxes their own citizens
having their primary residence in a foreign country.

Most countries acknowledge that the country of your primary residence
has the right to tax your income and won't tax you again. So if you
are a German citizen living primarily in the U.S., Germany will
acknowledge that the U.S. will tax your income and you do not owe
taxes on that same income in Germany. There are exceptions to those
rules, e.g. if that German citizen has income from property or
investments in Germany while living in the U.S., Germany may want a
slice of that cake.

But the U.S. is indeed the only country that taxes its citizen on all
income even if their primary residence is abroad with a sizable
exemption though so most Android programmers shouldn't be affected. So
if you are an American living in Germany, you need to pay taxes in
Germany and then have the added joy of filing your taxes also with the
U.S. government and paying taxes again over there. That's actually my
situation. But then the exemption kicks in (close to $90,000) and a
double tax treaty between Germany and the U.S. so that I can offset
taxes paid in Germany against those owed in the U.S. And since Germany
taxes are a lot higher than U.S. taxes, I won't have to pay anything
to uncle sam but I still have to file taxes.

Martin
mobitobi
Gentle Alarm, Sleep Now

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