citygirl
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steveinbsas said:How does this make a difference? If an individual has dual citizenship don't they incur taxes liabilities in both Argentina and the USA? Isn't this also true for a US citizen who has residency in Argentina?
There is a foreign income exemption of over $85,000 USD for US taxpayers working abroad, but I have also read that this does not apply to US citizens working in Argentina as there currently is no "tax treaty" between the two nations.
Can you clarify this?
I don't remember anyone on the forum ever saying they received the US tax exemption for income earned in Argentina.
I believe I have responded to this before. If you are working in Argentina and the services are delivered in Argentina (in this example), and you meet either the bonafide resident test or the physical presence test (you spent at least 330 days there), then you can claim the foreign earned income exclusion. Income of up to $91,400 USD *may* be exempt from filing for US taxes.
Over that amount, as you mentioned, there is no tax treat between Argentina & the US so yes, you can face the issue of having to pay both countries. However, you can apply 20% of the taxes you paid (IIRC) in Argentina to your potential tax liability in the US.
The IRS has quite a bit of helpful information on the website.