US Dual Citizenship and Taxation: A Comprehensive Guide

Navigating the complexities of holding dual citizenship can be challenging, especially when it comes to understanding tax obligations. As a dual citizen of the United States and another country, it's essential to grasp your tax responsibilities to avoid potential pitfalls. At TAM Accounting, we've worked with numerous dual citizens, helping them navigate the intricacies of the US tax system. Here's a concise guide to shed light on the matter:

1. Worldwide Income Reporting:

  • The United States, unlike many countries, taxes its citizens on worldwide income. This means if you're a US citizen earning income in another country, you may need to report this to the IRS.

2. Foreign Earned Income Exclusion (FEIE):

  • The US offers provisions like the Foreign Earned Income Exclusion (FEIE) which allows citizens to exclude a certain amount of their foreign-earned income from US taxation. However, to qualify, one must meet specific residency requirements.

3. Foreign Bank Account Reporting (FBAR):

  • Dual citizens with financial accounts exceeding certain thresholds in foreign countries may be required to report these accounts annually. This is done through the FBAR (FinCEN Form 114) to ensure transparency.


  • The Foreign Account Tax Compliance Act (FATCA) requires US taxpayers to report certain foreign financial accounts and offshore assets. Additionally, foreign institutions may also be asked to report about their American clients.

5. Tax Treaties:

  • The US has tax treaties with many countries to avoid double taxation of dual citizens. These treaties can provide a myriad of benefits, such as reduced tax rates and exclusive exemptions.

6. Expatriation and Renouncing US Citizenship:

  • Dual citizens sometimes consider renouncing their US citizenship, mainly due to tax reasons. However, the US has an "exit tax" regime, targeting high-net-worth individuals who wish to renounce. Detailed considerations and understanding are crucial before making such a decision.

US dual citizenship can offer the best of both worlds, but it also brings a unique set of tax challenges. Proper understanding and management of these obligations are essential to avoid penalties and ensure compliance.

At TAM Accounting, we specialize in assisting dual citizens with their US tax obligations. Our expert team stays updated with the ever-evolving tax regulations to provide our clients with tailored solutions. If you're a dual citizen seeking clarity on your tax obligations or require assistance with your filings, get in touch with us. Let us help you navigate the maze of US taxation seamlessly.

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