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Old 08.02.2010, 11:33
scrambled scrambled is offline
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Re: Question about US tax liability

yes, you do owe the US some tax.

first, you take off about 90k USD from your 150k, leaving you with about 60k. (this is your foreign earned income exclusion at work)

this 60k is subject to US taxes, minus the taxes you paid on this amount to the Swiss gvt.

just for example, if the US taxes are about 30% and swiss taxes are about 20%, then you owe the US 18k. but you paid the swiss 12k. So you get a foreign tax credit for this 12k and you owe the US 6k.
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