I work overseas for a foreign company. Do I report the Income and pay Taxes

Updated: 03/07/2023

U.S. Citizens and U.S. Resident Aliens, both those who have a  U.S. Green Card and those who meet the substantial presence test, are required to report and pay taxes on their worldwide income. However, generally, there are certain exceptions and exclusions under certain conditions. 

To avoid double taxation, IRS provides three options:

(1) To Deduct foreign taxes on Schedule A, like other common deductions

(2) To use form 1116 to claim the foreign Tax credit

(3) To use Form 2555 to claim the Foreign Earned Income Exclusion (FEIE) to allow those that qualify to exclude some or all of their foreign earned Income from the US Taxes. The amount of Foreign earned Income exclusion is 112000.00 for 2022.

United States has Tax Treaties with Other Countries and these treaties may be relevant in certain situations for US Tax payers. 

Tax Treaties

26.1- United States Tax Treaty with Armenia          26.2- United States Tax Treaty with Australia          26.3- United States Tax Treaty with Austria          26.4- United States Tax Treaty with Azerbaijan          26.5- United States Tax Treaty with Bangladesh          26.6- United States Tax Treaty with Barbados          26.7- United States Tax Treaty with Belarus          26.8- United States Tax Treaty with Belgium          26.9- United States Tax Treaty with Bulgaria          26.10- United States Tax Treaty with Canada          26.11- United States Tax Treaty with China          26.12- United States Tax Treaty with Cyprus          26.13- United States Tax Treaty with Czech Republic      26.14- United States Tax Treaty with Denmark          26.15- United States Tax Treaty with Egypt          26.16- United States Tax Treaty with Estonia           26.17- United States Tax Treaty with Finland          26.18- United States Tax Treaty with France          26.19- United  States Tax Treaty with Georgia           26.20- United States Tax Treaty with Germany          26.21- United States Tax Treaty with Greece           26.22- United States Tax Treaty with Hungary          26.23- United States Tax Treaty with Iceland           26.24- United States Tax Treaty with India          26.25- United States Tax Treaty with Indonesia           26.26- United States Tax Treaty with Ireland          26.27- United States Tax Treaty with Israel           26.28- United States Tax Treaty with Italy          26.29- United States Tax Treaty with Jamaica             26.30- United States Tax Treaty with Japan          26.31- United States Tax Treaty with Kazakhstan           26.32- United States Tax Treaty with Korea          26.33- United States Tax Treaty with Kyrgyzstan          26.34- United States Tax Treaty with Latvia          26.35- United States Tax Treaty with Lithuania          26.36- United States Tax Treaty with Luxembourg          26.37- United States Tax Treaty with Malta          26.38- United States Tax Treaty with Mexico          26.39- United States Tax Treaty with Moldova          26.40- United States Tax Treaty with Morocco          26.41- United States Tax Treaty with Netherlands          26.42- United States Tax Treaty with New Zealand          26.43- United States Tax Treaty with Norway          26.44- United States Tax Treaty with Pakistan          26.45- United States Tax Treaty with Philippines          26.46- United States Tax Treaty with Poland          26.47- United States Tax Treaty with Portugal          26.48- United States Tax Treaty with Romania          26.49- United States Tax Treaty with Russia          26.50- United States Tax Treaty with Slovak Republic          26.51- United States Tax Treaty with Slovenia          26.52- United States Tax Treaty with South Africa          26.53- United States Tax Treaty with Spain          26.54- United States Tax Treaty with Sri Lanka          26.55- United States Tax Treaty with Sweden          26.56- United States Tax Treaty with Switzerland          26.57- United States Tax Treaty with Tajikistan          26.58- United States Tax Treaty with Thailand          26.59- United States Tax Treaty with Trinidad          26.60- United States Tax Treaty with Tunisia          26.61- United States Tax Treaty with Turkey          26.62- United States Tax Treaty with Turkmenistan          26.63- United States Tax Treaty with Ukraine          26.64- United States Tax Treaty of Union of Soviet Socialist Republics (USSR)          26.65- United States Tax Treaty with United Kingdom           26.66- United States Tax Treaty with Uzbekistan          26.67- United States Tax Treaty with Venezuela