Taxation of US citizens
The US government imposes income tax on US persons based on their worldwide income, not residency. The following are considered to be US persons for tax purposes:
- A citizen born in the United States or outside with at least one parent who is a US citizen;
- A naturalized citizen;
- A resident of the United States for tax purposes if they meet either the green card test or the substantial presence test for the calendar year;
- Any other person who is not a foreign person.