Taxable Income of U.S. Citizens /Resident Aliens; Reportable to the IRS
Persons filing a U.S. income tax return as a resident of the USA or as a U.S. citizen are required to report (i.e.declare) their worldwide income to the Internal Revenue Service. This includes in-come from sources in the U.S. and also income from sources in all Asian and African countries. Overseas residents may be eligible for certain tax treaty benefits, exclusions and or credits, but the worldwide income must first be reported before the exclusion/credit can be applied.
Eligibility for these special rules may be lost if a tax return is not timely filed. For a complete summary of U.S. income tax treaties, refer to IRS Publication 901, U.S. Tax Treaties. For the special rules and tax benefits available to U.S. citizens and resident aliens residing outside of the USA, refer to IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.