
Originally Posted by
tempbrit
If you are a US citizen, then your earnings will be taxed no matter where you earn the money (in the US or outside the USA). You are entitled to a $70K exemption per year after your remain outside the US for 331 consecutive days or one full year. If your earnings exceed the $70K (which is subject to a number of adjustments) then you may be able to offset your US tax liability with the taxes you pay to a foreign government. However, this is in nearly every case not a dollar for dollar credit situation. In almost all cases, US taxpayers end up paying a bit to the IRS.
If you are a US citizen and wish to remain one in good standing with the IRS, your worldwide earnings are subject to taxation in the US.