Do you mean pay, or file? With the Foreign Earned Income Exclusion, everything up to ~USD$91k [edit: 97k, now] of foreign-earned income should be exempt assuming you are an actual resident of the country you are working in. If you make more than that, you can apply for tax exemption in the US if you pay higher tax rates in your country of residence. So the only scenario where you are paying US income taxes is if you are either not really residing in this foreign country, or making over $97k/year AND paying less local taxes than the US (unlikely in the vast majority of developed countries). Yes, it's a pain in the ass, but it's part of being an adult.
You should have discussed the earnings statement with your employer prior to employment. My former employer gave me an earnings statement each fiscal year (it was the local equivalent of a W-2), and I would attach a note specifying the conversion of the local currency into USD using the Treasury's official exchange rate for that year. There are instructions on the relevant IRS form.
I_PET_NEKOS21 karma
Do you mean pay, or file? With the Foreign Earned Income Exclusion, everything up to ~USD$91k [edit: 97k, now] of foreign-earned income should be exempt assuming you are an actual resident of the country you are working in. If you make more than that, you can apply for tax exemption in the US if you pay higher tax rates in your country of residence. So the only scenario where you are paying US income taxes is if you are either not really residing in this foreign country, or making over $97k/year AND paying less local taxes than the US (unlikely in the vast majority of developed countries). Yes, it's a pain in the ass, but it's part of being an adult.
You should have discussed the earnings statement with your employer prior to employment. My former employer gave me an earnings statement each fiscal year (it was the local equivalent of a W-2), and I would attach a note specifying the conversion of the local currency into USD using the Treasury's official exchange rate for that year. There are instructions on the relevant IRS form.
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