Foreign income

hsyang — Wed, 11 Feb 2026 06:38:28 GMT

I'm a citizen of the U.S. If I move to Taiwan and am employed by Taiwan's company. I need to pay tax for Taiwan for the wage. Do I still need to pay the same income tax in the U.S.?

e.g. if my wage in Taiwan is $100000. if I already paid 30% tax which is $30000 in Taiwan. Do I still need to pay the regular tax rate in the U.S (e.g. 30%)? That will be total 30% + 30% = $60000. Or if there is any tax credit or exemption for the income?

Re: Foreign income

DMarkM1 — Wed, 06 Mar 2024 21:46:36 GMT

No, there are mitigations for the double taxation. If you qualify based on your time in the foreign country during the tax year (or other criteria) you may be able to exclude from US taxes an amount up to $120,000 for tax year 2023 but adjusted each tax year. In addition, you can exclude or deduct certain foreign housing amounts. Here is a link with criteria for the foreign income exclusion.

If you do not qualify for the foreign income exclusion you could claim the foreign tax credit for the taxes paid to Taiwan.

You cannot claim both on the same income. So if for example the exclusion does not cover all the foreign income you claim the tax credit for the tax on the remaining amount.

Here is a link with more details.

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Foreign income

Re: Foreign income