wat0n wrote:It includes American citizens who earn income abroad ("Under these same treaties, residents or citizens of the United States are taxed at a reduced rate, or are exempt from foreign taxes, on certain items of income they receive from sources within foreign countries. Most income tax treaties contain what is known as a "saving clause" which prevents a citizen or resident of the United States from using the provisions of a tax treaty in order to avoid taxation of U.S. source income")
I agree though that this is a rather intrusive system, but it's entirely possible that as the economy globalizes this becomes used more widely.
It seemed to refer in passing to American citizens who are residents of foreign countries, with respect to their foreign tax liabilities for income earned in the US.https://www.irs.gov/individuals/interna ... -exclusion
In 2021, Americans who are bonafide residents of a foreign country, with their tax home in the foreign country, are exempt from US taxes up to $108,000.
I had to file my taxes (and was exempt, since I didn't make near that much) when I was living abroad for years, and had to pass that 'bonafide resident' test, so I sorta have a little experience with this topic.