The United States is one of the few countries in the world whose taxation policy is based on citizenship and not just residency. This means that American citizens and green card holders must report to the US all their income (through a tax return) regardless of their place of residence and regardless of the location where they generate their income, including salary, profit from a business, income from interest, dividends, and capital gains, rent, gift and inheritance, and more must all be reported.
In addition to the obligation to report on all income, there is usually also an obligation to report holdings in financial accounts located outside the US, e.g., bank checking account, investment account, pension, continuing education, and more.
Beyond the annual reporting obligations, in many cases, US citizens and green card holders could be entitled to various credits/refunds from the US that can only be requested as part of filing an annual tax return.
If you are an American citizen or green card holder, contact us today for consultation and a professional service regarding tax reporting to the USA.