Who the US taxes, and on what
The United States taxes its citizens and residents on worldwide income, wherever they live and wherever the income is earned. Green card holders are generally residents for tax purposes until their status is formally ended, even after they move abroad, and others can become residents by spending enough time in the country under a day-count test. Nonresidents are generally taxed on certain US-source income and on income connected with a US business. People who arrive or leave partway through a year may be dual-status, with different rules for each part. Getting residency right comes first, because almost everything else depends on it.
Avoiding being taxed twice
Because other countries also tax their residents, the same income can be claimed by two systems. Several tools reduce that overlap: a credit for foreign income taxes paid, an exclusion for some earned income of people living abroad, and income tax treaties that assign taxing rights and lower withholding on certain payments. These tools do not always fit together neatly, and choosing one can affect the use of another. Investments held abroad, such as foreign mutual funds, pensions, and insurance products, often receive unfavorable treatment under US rules even when they are ordinary at home. On top of the tax itself, there are reporting forms for foreign accounts, foreign companies, foreign trusts, and large gifts from abroad.
Reviewing your situation
In a first meeting we sort out your residency history, your citizenship and immigration status, and where your income and assets are located. We look at what has been filed in the United States and abroad, and whether any reporting has been missed. For people planning a move, we discuss timing, since the year of arrival or departure can create opportunities or traps. For citizens and long-time green card holders considering giving up status, an exit tax and a final reporting process may apply. Where your situation needs advice under another country's law, we work alongside local advisers.
