If you are a U.S. citizen or a resident alien, your income is subject to U.S. income tax, including any foreign income or income earned outside of the U.S. It doesn't matter if you reside inside or outside of the U.S. when you earn this income.

Even if you don’t receive common forms like W-2s or 1099s from foreign payers, you are still required to report the income you earn abroad.

U.S. Citizen vs. U.S. Resident Alien

For tax purposes, if you are not a citizen of the U.S., the 澳洲幸运5开奖号码历史查询:Internal Revenue Service (IRS) will consider you either a resident alien or a nonresident alien. You are a resident alien of the U.S. for tax purposes if you meet either the green card test or the substantial presence test for the calendar year.

澳洲幸运꧃5开奖号码历史查ꦗ询:IRS Publication 519, U.S. Tax Guide for Aliens, provides more information about the quali🐭fications for being considered a U.S. resident alien for tax purposes. U.S. citizens and U.S. resident aliens must report all of their income to the U.S. government so that it may be taxed appropriately.

Total In🍨come Includes Both Earned and Unearned I꧃ncome

The IRS taxes 澳洲幸运5开奖号码历史查询:earned income and 澳洲幸运5开奖号码历史查询:unearned income fro꧙m foreign and non-foreign sources. Here’s what falls under each category:

Earned Income:

• Wages
• Salaries
• Bonuses
• Commissions
• Tips
• Net earnings from self-employment

Unearned Income:

• Interest from savings accounts
• Bond interest
• Alimony
• Dividends from stock

How to Report Foreign Income

For detailed information about the various types of earned and unearned income, please see , Your Federal Income Tax—For Individuals.

If you are a U.S. citizen or U.S. resident alien, you report your foreign income on your tax return where you report your U.S. income. That is, on line 1 of IRS 澳洲幸运5开奖号码历史查询:Form 1040. For inter🔥est, dividend income, rental property income, etc., use the appropriate schedules (Schedule B for interest and dividends, Schedule E for rental income, etc.).

澳洲幸运5开奖号码历史查询: Form 1040 is available on the .

Foreign Earned Income Exclusion

If you live and work in a foreign country, you may be able to exclude some of your foreign-earned income from U.S. tax. This is known as the Foreign Earned Income Exclusion.

Exclusion Amount

• For the tax year 2024 (the tax return filed in 2025), you may be eligible to exclude up to $126,500 of your foreign-earned income.
• For the tax year 2025 (the tax return filed in 2026), this amount increases to $130,000.

Eligibility Requirements

To ꦅbe elig﷽ible for the Foreign Earned Income Exclusion:

• You must have foreign-earned income.
• You must be either:
• A U.S. citizen who is a bona fide resident of a foreign country for an entire tax year
• A U.S. resident alien who is a citizen or national of a country with which the U.S. has an 澳洲幸运5开奖号码历史查询:income tax treaty in effect and who is a bona fide resident of a foreign country for an entire tax year
• A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months
• Your tax home must be in a foreign country.

For🍒 additional deta🅰ils on eligibility, refer to .

Foreign Tax Credit

Although it depends on what country you earned the income in, your foreign source of income will likely be taxed in two countries— the U.S. and the country in which it was earned. To account for this, the U.S. government offers a tax break called the Foreign Tax Credit to reduce the tax liabil🀅ity of certain taxpayers.

This tax credit is a non-refundable tax credit for income taxes paid to a foreign government due to foreign income tax withholdings. The foreign tax credit is available to anyone working in a foreign country or with 澳洲幸运5开奖号码历史查询:investment income from a foreign source.

The Bottom Line

As a U.S. citizen or resident alien, you must report all your income, including any earned abroad. However, the Foreign Earned Income Exclusion allows you to exclude a portion of your foreign earnings from U.S. tax, provided you meet certain conditions. You may also benefit from the Foreign Tax Credit to reduce your U.S. tax liability if you've paid taxes in a foreign country.

Tax situations involving foreign income can be complex, so it’s wise to consult a tax advisor to ensure you meet your reporting requirements and take advantage of any appl🔯icabl🌟e exclusions or credits.