Cigna International Health Insurance

U.S. Income Tax Treaties

By H&R Block

Summary: The United States has entered into income tax treaties with more than 60 countries. However, there's very little U.S. tax relief available to a U.S. citizen who's living abroad under the terms of an income tax treaty.

Expat Taxes - U.S. Income Tax Treaties

The United States has entered into income tax treaties with more than 60 countries. If you're an expat who's working in one of those countries for a short time, you might be exempt from taxes in that foreign country.

However, there's very little U.S. tax relief available to a U.S. citizen who's living abroad under the terms of an income tax treaty. Income tax treaties usually contain a provision that allows the United States to tax its citizens and residents as if the treaty didn't exist.

U.S. income tax treaties might still provide tax benefits to citizens and residents by granting:

  • Exemption from U.S. tax on Social Security benefits
  • A special credit available for foreign tax paid on certain U.S. source income

Also, under the terms of certain treaties, U.S. taxpayers with foreign retirement accounts can:

  • Deduct contributions to the accounts
  • Defer tax on earnings in the accounts until distribution

These kinds of foreign retirement accounts don't usually qualify for such treatment.

As an expat, U.S. income tax treaties may provide you with an exemption from foreign country taxation. If you think you might qualify for treaty benefits available to U.S. expats in your foreign country of residence, ask the IRS for a residency certification. This certification is granted through Form 6166. Certification allows you to support your claim for treaty benefits in a foreign country. An H&R Block expat tax advisor can help you compile your information and request this documentation from the IRS.

For more information, contact an H&R Block Expat Tax Advisor at www.hrblock.com/expats.

About the Author

AS H&R BlockH&R Block is the global leader in tax preparation. Since 1955, H&R Block has prepared more than 550 million tax returns worldwide. We specialize in U.S. expat tax preparation for Americans living abroad.

Cigna International Health Insurance

Write a Comment about this Article

Sign In to post a comment.

Comments about this Article

Vdix
May 9, 2014 13:33

I appreciate this information and would like to learn more, specifically about taxes regarding expat living in Saudi Arabia. Thank you

First Published: Jun 13, 2013

Expatriate Health Insurance

Get a quote for expat health insurance from our partner, Cigna Global Health.
Get a Quote

Culture-Shock-in-TokyoAn Expat Talks about Culture Shock & Living in Tokyo, Japan

An expat talks about adjusting to life and working in Japan. She appreciates the kindness and generosity of strangers, but says that not being able to speak Japanese can be isolating.

An expat talks about adjusting to life and working in Japan. She appreciates the kindness and generosity of strangers, but says that not being able to speak Japanese can be isolating. ...

Living-in-TaguigAn Expat Discusses Living in Taguig, Philippines

An British expat talks about spending winters in Taguig, Philippines with his Filipina wife of 25 years. He does miss chatting with other English speakers and hopes to find some expat clubs in Bonifacio Global City.

An British expat talks about spending winters in Taguig, Philippines with his Filipina wife of 25 years. He does miss chatting with other English speakers and hopes to find some expat clubs in Bonifa...

French Schools in New York

Are you a Francophone moving to NYC? This article offers an extensive list of French schools in NYC with addresses, maps and accreditation information from the French Consulate General. The list covers all ages ranges from French nursery schools through French high schools in New York City. In addition to private French schools in the NYC area, this article covers all of the NYC public schools with French dual language programs (DLP) and several well-known French schools in suburban New York and New Jersey.

Are you a Francophone moving to NYC? This article offers an extensive list of French schools in NYC with addresses, maps and accreditation information from the French Consulate General. The list cov...

Moving to Dublin

Expats are moving to Dublin in increasing numbers. Over the course of the last few decades, Ireland has emerged as a formidable economic force, and Dublin has benefited greatly. Here are some basics for those expats considering moving to Dublin.

Expats are moving to Dublin in increasing numbers. Over the course of the last few decades, Ireland has emerged as a formidable economic force, and Dublin has benefited greatly. Here are some basics...

Copyright 1997-2019 Burlingame Interactive, Inc.

Privacy Policy Legal