Do You Get Double Taxed as a US Citizen Living Abroad?

As a U.S. citizen living abroad, you are generally required to file U.S. taxes on your worldwide income, regardless of where you live. However, this does not usually mean you will be taxed twice on the same income.

The U.S. has several measures in place to help reduce or prevent double taxation:

• Foreign Earned Income Exclusion (FEIE): You may be able to exclude a certain amount of foreign earned income from U.S. taxation. For the 2026 tax year, the maximum exclusion is $132,900.
• Foreign Tax Credit (FTC): If you pay taxes to a foreign government, you can often claim a credit on your U.S. tax return for those foreign taxes paid. This can reduce or even eliminate your U.S. tax liability.
• Tax treaties: The U.S. has tax treaties with many countries to help avoid double taxation and clarify which country has the primary right to tax certain types of income.

While these provisions can significantly reduce or eliminate double taxation, the rules depend on your specific situation. Your income type, country of residence, local tax rate, and whether you qualify under the Bona Fide Residence Test or Physical Presence Test can all affect the outcome.

In short: you may still need to file a U.S. tax return while living abroad, but you will not necessarily owe U.S. tax. A tax professional familiar with expat tax rules can help you stay compliant and choose the best option for your situation.