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Every taxpayer who receives income from sources outside the United States is required to report that income and pay tax on those earnings. However, the taxes that have been paid on the income in the Country of Origination can be claimed as a credit on the taxpayer's US income tax return. For those taxpayers who live outside the United States, the Foreign Earned Income and Foreign Housing Exclusions can be used to reduce the amount of foreign income a taxpayer will pay tax on. Individuals who have a foreign bank account or similar financial account with a value exceeding $10,000 must also file an information return using Form TDF 90-22.1. |
