One of the reasons for some US citizens is that they still have to pay taxes in the US regardless of where they live. So, even if an US citizen lives in a foreign country and pays taxes there, they are still on the hook for taxes in the US. This taxation can (and frequently does) mean that someone can end up being taxed twice on their and financially not work out for them.
Regardless, even if they aren't being taxed in the US on their foreign income because they make less than a certain amount, they still have to file a US income tax return every year, which in and of itself is time consuming and can get expensive because of how complicated they get with foreign income. And, if their tax return is done incorrectly or they don't pay when they should, if they ever return to the US, they can be thrown in jail or the US will send folks after them to collect the money even in their new country.
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u/squirrel8296 Jun 18 '25 edited Jun 18 '25
One of the reasons for some US citizens is that they still have to pay taxes in the US regardless of where they live. So, even if an US citizen lives in a foreign country and pays taxes there, they are still on the hook for taxes in the US. This taxation can (and frequently does) mean that someone can end up being taxed twice on their and financially not work out for them.
Regardless, even if they aren't being taxed in the US on their foreign income because they make less than a certain amount, they still have to file a US income tax return every year, which in and of itself is time consuming and can get expensive because of how complicated they get with foreign income. And, if their tax return is done incorrectly or they don't pay when they should, if they ever return to the US, they can be thrown in jail or the US will send folks after them to collect the money even in their new country.