How does taxes work?

How do taxes work for a u.s. citizen outside of the u.s.?

• Hi there, Let's say I have absolutely no knowledge of how taxation even works. I am not sure who to talk to, to understand what I would owe. Now, I am turning 18, and plan to leave the U.S. and live in another country while still maintaining U.S. citizenship. I have never paid taxes, since I am a dependent on my parents. But now that I am moving on my own, and leaving the country, I am confused at how this process even works. I do not know how taxes are collected. Do you pay the money all at one point or in increments? When do you pay them? What are returns and how do they work? If you are paying money for taxes, why would they return money to you? If I am a freelancer, do I have to add up my income from this and pay the freelance tax AND the personal tax, or only one tax form process counts for everything I owe? How do I know which form to fill out? Also, I am marrying a foreigner, but they don't have to pay u.s. taxes, so would I put myself as married-filing separately? (though I am not divorced?) I have no kids, so I don't have to worry about dependents. Or does my husband count as a dependent to me? And if I do choose to have a kid in the future, would I file them as a dependent? Does it depend if they are born in the U.S. or another country? I have looked at the IRS government site, but it seems hard for me to make clear all of the rules. Is there a simpler way, or someone I can talk to who can add up what I owe for me? Does it cost money to talk to a tax preparer? I just don't want to get into any trouble with not paying taxes that I don't know even know about. Is it free to just talk to someone who can tell me what I owe? Then just pay it through a bank account or debit card transfer. Also, I plan to have multiple bank accounts. Business and personal use. Will this matter? Can I pay from just one bank account? Thanks for the help. Basically I am a young adult, student/freelancer/expat and I wish to do everything with respect to the policies so I don't get in trouble. No one has really been able to explain these things to me, so I would like to have an understandable resource for which I can better understand how to do everything correctly. If you know of any, or have done this, let me know. And also, in regard to being a student, I will finish my degree in 2 years from now, but am paying resident costs at this time. I planned to keep paying resident tuition costs, since I heard that you have to be out of the state for 1 year before claiming the residency of another place anyway. And maybe I would travel back to visit, in between. And since I am under a spouse visa, I would be able to go back forth without hassle. Is this ok? Thanks, just don't want to put myself into any trouble, but I want to save money. Thank you for your help.

• Answer:

  If you live and work outside the US for 330 days out of a calendar year (365 days) you will not be taxed on the first $92,000 you make in the foreign country. You would file a 1040 form just like any other U.S. citizen, but you will not owe any taxes to the U.S. government as long as you live and work in the foreign country at least 330 days per year and make less than $92,000. If your salary is more than $92,000 you would pay the taxes on the amount above the excludable amount. For example, if you make $100,000 in salary in the foreign country, you would have to pay the U.S. government taxes on $8,000, which comes out to $2,000 (i.e., 25% of $8,000). No, you do not have to pay income tax to the U.S. government upfront (unless you really wanted to).