Tax Question

[tx75070]

I checked with a tax consultant. Without going into detail I'll share the bottom line. When you are living abroad and technically paying taxes to two different countries, you will never end up paying more taxes than you would have earning the same income and still living in the US. In fact, there is a chance you would pay less total taxes. This is due to a tax exclusion on the first $80000 earned and a foreign income tax credit on taxes paid that exceeds the dollar amount of taxes that would have been paid on the same income earned in the US.

[tallwithdimples]

You can also exclude your housing cost on top of the 80k an year. If you come from a high tax state like NY or CA, at least you don't have to pay the state and city tax. It will also be tough to give up your citizenship for tax purposes. The IRS will impose taxes on your for 10 more years, even when you are not a citizen. Failure to comply will restrict you from entering the States again.