Dual Citizenship Tax Impact Calculator
Estimate the tax implications of holding dual citizenship including FBAR requirements, foreign tax credits, and exclusions.
Results
Visualization
How It Works
U.S. citizens and green card holders are taxed on worldwide income regardless of where they live. Dual citizens must file U.S. taxes even if living abroad. Key relief mechanisms include the Foreign Earned Income Exclusion (FEIE, up to $126,500 in 2024), the Foreign Tax Credit (FTC), and tax treaties. Accounts over $10,000 require FBAR reporting.
The Formula
Net US Tax = US Tax on (Worldwide Income - FEIE) - Foreign Tax Credit
FTC Limit = US Tax x (Foreign Income / Total Income)
FBAR = Foreign Accounts >= $10,000
FTC Limit = US Tax x (Foreign Income / Total Income)
FBAR = Foreign Accounts >= $10,000
Variables
- FEIE — Foreign Earned Income Exclusion — up to $126,500 if living abroad
- FTC — Foreign Tax Credit — dollar-for-dollar credit for foreign taxes paid
- FBAR — Report of Foreign Bank Accounts — required if aggregate balance >= $10,000
Example
A dual citizen earning $80K in the US and $20K abroad, paying $4K in foreign taxes, with $15K in foreign accounts: owes approximately $14,700 net US tax after a $3,600 FTC, must file FBAR, and does not need FATCA reporting.
Tips
- The US taxes worldwide income — you cannot avoid filing by living abroad.
- FBAR penalties are severe: up to $12,909 per account for non-willful violations.
- The FEIE and FTC cannot be used together on the same income.
- Consider a tax treaty if your other country has one with the US.
- Renouncing US citizenship triggers an exit tax on unrealized gains.