If you are a US citizen or resident alien, you are required to report and pay taxes on your worldwide income, including income earned overseas. This means that if you receive income from a foreign source, you must report it on your US income tax return, regardless of where it was earned.
You may be able to exclude some or all of your foreign earned income from your US taxable income if you meet certain requirements, such as the bona fide residence test or the physical presence test. These tests require you to have lived in a foreign country for a certain period of time and to have a tax home in that country.
It is important to note that tax laws and regulations differ from country to country, and you may also be liable for taxes in the country where the income was earned. You should consult with a tax professional or an attorney who is knowledgeable in the area of international tax law to ensure compliance with all applicable tax laws.
If you have not reported your foreign income in the past and are concerned about potential penalties or other consequences, you may be eligible for the voluntary disclosure program offered by the IRS. Under this program, taxpayers who come forward to disclose previously unreported foreign income may face reduced penalties and the possibility of a criminal investigation may be avoided.
In summary, if you earn income overseas, it is important to understand your reporting and tax obligations, and seek professional guidance if necessary.
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