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U.S. citizens are likely to shell out taxes on all incomes made in foreign countries. The proceeds are to be included inside income taxation statements and important taxes should be paid. However, for incomes that are taxed the actual foreign countries, taxpayers are allowed to include a tax credit equivalent towards taxes paid but into the limit belonging to the taxes which may be have been paid if for example the taxable income was given birth to domestically. For citizens that reside abroad, the IRS provides a tax free waiver for the first $92,900 earned in the year 2011.
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