I have already paid taxes in my country of residence. Does that have any influence on whether or not I have to pay in the US?

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Yes. It will most likely have an influence. through at least three ways:

1) The foreign tax credit: ‘If you paid taxes abroad and are subject to U.S. tax on the same income, you may be able to take a credit for those taxes. This way you don’t pay twice

2) Most countries have a double taxation treaty with the US in place which describes taxes that are and aren’t credible. Note: Income that’s not taxed in your country of residence might be taxed in the US. This means you would unfortunately still need to pay the US tax.

3) The foreign income exclusion allows you to exclude certain income for US purposes and benefit from an exclusion up to around $120,000 (2023).  However, it does matter what kind of income it is.

Note: even if you don’t owe tax this doesn’t dismiss you from filing tax returns in the US.

This is meant as a helpful guideline but by no means should you take any action based on this advice. We always recommend to consult a tax expert.


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