US citizens are subject to US laws even when they are abroad. This includes paying taxes, obeying anti-discrimination laws, and adhering to laws regarding bribes and corruption. However, the application of US laws abroad can be complex and vary depending on the specific circumstances and the laws of the foreign country involved. For example, US citizens working for a US company or subsidiary abroad are protected from discrimination under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA). On the other hand, laws such as the Fair Labor Standards Act and the Family and Medical Leave Act do not have extraterritorial application.
Characteristics | Values |
---|---|
US employment laws that apply to US citizens working abroad | Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA) and the Americans with Disabilities Act (ADA) |
US employment laws that do not apply to US citizens working abroad | Fair Labor Standards Act, the Family and Medical Leave Act, the National Labor Relations Act, the Occupational Safety and Health Act and state laws |
US laws governing international activities | Antiboycott Laws, Bribes & Corruption, Crime Reporting, Economic Sanctions, Export Control Regulations |
US laws that apply to US citizens abroad | US citizens are liable for taxes, regardless of where they live |
US laws that may be broken by US citizens abroad | Foreign Corrupt Practices Act (FCPA) |
US criminal laws that apply overseas | Crime in US territorial waters or vessels, Implementing treaties and international agreements, Foreign commerce-related crimes with a US nexus, Conspiracy and aiding/abetting crimes |
What You'll Learn
- US citizens are liable for taxes, regardless of where they live
- US citizens are protected from discrimination under the Civil Rights Act of 1964, the ADEA, and the ADA
- US citizens can be prosecuted for breaking US laws while abroad
- US citizens are protected by the 4th and 5th Amendments when investigated for crimes abroad
- US citizens can be extradited to the US to stand trial
US citizens are liable for taxes, regardless of where they live
US citizens are liable for taxes on their worldwide income, regardless of where they live and work. This is because US taxation is based on citizenship rather than residence. The only way to avoid this requirement is to renounce your US citizenship, but even this does not always ensure you are out of the US tax system forever.
Failing to file your taxes when required could lead to steep penalties, including fines, interest charges, and even jail time. US citizens living abroad who fail to file US taxes risk passport denial, penalties, and even criminal charges. The IRS charges penalties for both late filing and late payments. If your lack of filing is willful—meaning you knowingly avoided your US tax requirements while living abroad—then more serious legal consequences may apply.
If you are a US citizen living abroad, you are still required to file a US federal tax return to report your worldwide income. You may also have to file a state tax return, depending on where you lived before moving overseas. This can further complicate your annual tax obligations. If you are unsure of whether you should file a state tax return, consult an expat tax professional.
In addition to your annual tax return, you may also be required to file additional US tax forms. For example, you will likely have to report your foreign assets and bank accounts on a Foreign Bank Account Report (FBAR).
While there is no blanket tax exemption for Americans overseas, the IRS does provide several tax benefits that help reduce your taxes. These include:
- Foreign Earned Income Exclusion (FEIE): This benefit allows you to exclude a certain amount of foreign earned income from US taxation. The total amount you can exclude changes every year. For 2024, the FEIE is capped at $126,500 per person.
- Foreign Tax Credit: This is a dollar-for-dollar credit on any income taxes paid to a foreign government.
- Foreign Housing Deduction (or Exclusion): When renting a home in another country, the IRS lets you deduct certain expenses from your US taxes.
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US citizens are protected from discrimination under the Civil Rights Act of 1964, the ADEA, and the ADA
The Civil Rights Act of 1964 prohibits employment discrimination based on race, colour, religion, sex, and national origin. It also includes protections for individuals who are pregnant or have recently given birth, ensuring they are treated the same as other employees with temporary illnesses or conditions.
The Age Discrimination in Employment Act (ADEA) protects individuals who are 40 years of age or older from discrimination in the workplace. It prohibits age discrimination in employment practices, including job advertisements and apprenticeship programs.
The Americans with Disabilities Act (ADA) is a civil rights law that prohibits discrimination against individuals with disabilities in many areas of public life, including jobs, schools, transportation, and public and private places. It gives civil rights protections to individuals with disabilities, similar to those provided based on race, colour, sex, national origin, age, and religion. The ADA requires employers to provide reasonable accommodations to qualified applicants or employees with disabilities and defines "direct threat" in relation to significant health and safety risks.
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US citizens can be prosecuted for breaking US laws while abroad
US citizens are subject to US law even when they are abroad. While criminal law is usually limited to the jurisdiction in which the alleged crime occurred, there are many circumstances in which crimes committed in other countries can be prosecuted in the United States as federal crimes.
The US Constitution has jurisdiction over crimes committed in locations outside the country. Under specific circumstances, US courts can prosecute certain criminal acts even if the accused are not American citizens. Several federal statutes have extraterritorial applications and can affect foreign citizens in overseas locations.
The US Constitution specifically states that a law applies to actions outside US territory when defendants can be prosecuted. Here are some of the situations that US jurisdiction covers:
- Citizens' Misconduct Abroad: US criminal law encompasses US citizens living and working abroad. For example, if a US citizen is found guilty of insider trading in another country, they can be prosecuted in a US court.
- Crimes Committed Against A US Citizen: US law has jurisdiction over any person committing a crime against a US citizen, regardless of their nationality.
- Corporations Conducting Transactions Involving US Citizens: US laws govern trades and any other complex financial transactions conducted within the US and/or involving American citizens.
- Crimes That Threaten The Security Of The US Or Affect Its Operations: Any criminal activity by a foreign citizen that could threaten the security of the US or hamper its regular functioning is punishable by US law.
- Crimes That Are Especially Heinous In Nature: The United States Law reserves the right to arrest and prosecute any person who is a citizen of any country worldwide and present in any location for crimes that are especially heinous and condemned by every nation. These include offenses like the slave trade, terrorism, apartheid, genocide, torture, war crimes, and the forcible relocation of entire populations.
Additionally, there are US laws that US citizens must obey while traveling, even if those laws do not exist in the country they are traveling to. For example, it is against US law (the Foreign Corrupt Practices Act) to bribe foreign officials. The US also maintains embargoes against several countries, which include travel restrictions. US citizens are liable for taxes, regardless of where they live.
US citizens can also be prosecuted for breaking US laws while on foreign soil. For example, the PROTECT Act of 2003 makes it illegal for a US citizen to partake in illicit sexual conduct abroad with someone under the age of 18.
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US citizens are protected by the 4th and 5th Amendments when investigated for crimes abroad
These rights apply to US citizens even when they are outside of US jurisdiction. However, it is important to note that when a US citizen is abroad, they are also subject to the laws of the country they are in. While the US Constitution may protect certain rights, it does not override the laws of the host country. For example, while the minimum age to legally consume alcohol in the US is generally 21, in many countries, the minimum age is 18 or lower. A 19-year-old US citizen can drink alcohol in a country like Chile, where it is legal according to local laws, but they would still be subject to any applicable local laws and regulations regarding alcohol consumption.
In addition to the laws of the host country, US citizens may also be subject to certain US laws that govern activities abroad. For example, the US government prohibits US organizations from participating in boycotts of other countries and also prohibits the bribery of foreign officials. US citizens are also generally liable for US taxes, regardless of where they live.
Furthermore, the US government can pass laws with extraterritorial jurisdiction, such as the PROTECT Act of 2003, which makes it illegal for US citizens to partake in illicit sexual conduct abroad with minors. Therefore, US citizens should be aware that they may be subject to both US laws and the laws of the country they are visiting when abroad.
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US citizens can be extradited to the US to stand trial
US citizens are subject to US laws, even when they are abroad. However, they are generally outside of the jurisdiction of those laws. For example, while the minimum age to consume alcohol in the US is 21, a 19-year-old US citizen can drink alcohol in a country where the legal drinking age is 18 or lower without breaking any US laws.
There are, however, exceptions to this. For instance, it is illegal for US citizens to bribe foreign officials, and they are also liable for taxes, regardless of where they live.
US citizens can also be extradited to the US to stand trial. Extradition is the formal process by which a fugitive found in one country is surrendered to another country for trial, punishment, or rehabilitation. In the US, extradition law is a collection of federal laws that regulate this process.
Extradition may be granted only pursuant to a treaty, although some countries may grant extradition without a treaty. The US has extradition treaties with 116 countries, and prosecutors must consult the Criminal Division's Office of International Affairs (OIA) on any matter relating to extradition before taking any action.
The OIA provides information and advice to federal and state prosecutors about the procedure for requesting extradition from abroad. They also advise and support federal prosecutors handling foreign extradition requests for fugitives found in the US. All formal requests for international extradition based on federal criminal charges must be reviewed and approved by the OIA.
The OIA determines whether the facts of the case meet the requirement of urgency under the terms of the applicable treaty. If they do, the OIA requests provisional arrest; if not, the prosecutor assembles the documents for a formal request for extradition.
Once the OIA receives a foreign extradition request, it reviews the request for sufficiency and then forwards it to the US Attorney's Office for the judicial district in which the fugitive is located. The US Attorney's office then obtains a warrant, and the fugitive is arrested and brought before a judge.
Although the order following the extradition hearing cannot be appealed, the fugitive may petition for a writ of habeas corpus as soon as the order is issued. The district court's decision on the writ of habeas corpus is subject to appeal, and the extradition may be stayed if the court so orders.
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Frequently asked questions
Yes, US citizens must file US federal income tax returns while abroad and report all taxable income according to the Internal Revenue Code.
US citizens are covered by US laws regardless of where they are in the world. However, they are generally outside of the jurisdiction of US laws when outside of the US, so they cannot be prosecuted for actions that are legal in the country they are visiting. There are some exceptions, such as the "PROTECT Act of 2003", which makes it illegal for US citizens to partake in illicit sexual conduct abroad with someone under the age of 18.
Yes, US taxpayers must report foreign financial accounts to the US Treasury Department, even if the accounts don't generate any taxable income.
Yes, US citizens living abroad can vote in US elections by requesting an absentee ballot.