If you are a US citizen or a permanent resident with a green card, then you are required to file a US tax return and pay US income tax on all your worldwide income, no matter where you actually live. If you also pay income tax in the country where you are living, there are at least two provisions I know of that reduce the burden of double taxation. You can claim a deduction or credit on your US tax return for any foreign income taxes that you paid on the same income. If you are overseas at least 330 days of the tax year, you can claim a foreign earned income exclusion. This excludes your foreign earned income from US taxation, but it does not exclude unearned income such as interest, dividends, and capital gains. But no matter which tax provisions apply, you would be required to file a return and pay whatever taxes are owed unless you renounce your permanent residency.
Other matters include the following:
TurboTax is technically not licensed for use overseas. I don’t think you can file using TurboTax online. You may be able to file using TurboTax if you buy the CD and install it on your own computer, but you may have to have someone in the US mail you the CD, because Amazon and other retailers may not be allowed to ship overseas.
Also, if you are owed a US tax refund, the IRS will only do direct deposit into a US bank account, or they will mail you a check, but the international mails are not always reliable. You may want to keep a US bank account open in your name to make tax payments and receive your refund by direct deposit. You can also check with the local US Consulate to see if they know of any local banks that will deposit a US check and convert it to local funds.
