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Can a US citizen work remotely for a US company abroad?

USPublished 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

A US citizen can generally work for a US employer, but working physically abroad creates separate foreign-country work, tax and payroll issues. US citizens generally remain subject to US tax on worldwide income, even while living overseas.

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Read the IRS guidance for US citizens and resident aliens living or working abroad before agreeing a cross-border remote arrangement.

Read IRS overseas-worker guidance

If I am a US citizen, can I work for a US company?

Being a US citizen generally resolves the US immigration question for employment in the United States because a citizen does not need a work visa to work in the country. A US employer still has to follow employment-eligibility verification rules, including Form I-9 for employment in the United States.

The harder question is different when the employee is physically living and working abroad. Immigration permission in the foreign country, local employment law, payroll registration, social taxes and income tax can all depend on where the work is actually performed. A US employer cannot assume that calling the job “remote” makes the foreign-country rules disappear.

Does living abroad end US tax reporting?

For US citizens and resident aliens, generally no. The IRS says citizens and resident aliens abroad are taxed on worldwide income and generally have the same federal filing framework as taxpayers in the United States. Living in Canada, Germany or another country does not by itself remove the US filing obligation.

Tax relief can exist, but it is claimed through the US return rather than by simply ignoring the foreign income. Depending on the facts, a taxpayer may qualify for the foreign earned income exclusion or a foreign tax credit. The two mechanisms are different, and the exclusion does not mean the income is never reported.

What is the 2026 foreign earned income exclusion?

For tax year 2026, the IRS says the maximum foreign earned income exclusion is $132,900 per qualifying person. Qualification also requires meeting the other rules for the exclusion, such as the applicable tax-home and residence or physical-presence tests.

A taxpayer should not treat the $132,900 figure as a blanket deduction available to every American working abroad. If the person does not qualify, foreign earnings remain part of worldwide income and normal US tax rules apply.

What if I pay tax in the country where I live?

A foreign tax credit may reduce US tax when qualifying foreign income taxes have been paid or accrued. The IRS says the credit is generally available to US citizens and resident aliens subject to US tax on foreign-source income, provided the foreign tax meets the applicable requirements.

The foreign tax credit is a separate calculation from the foreign earned income exclusion. The IRS also warns that foreign taxes imposed on income excluded under the foreign earned income exclusion are not simply available again as a credit for the same excluded income.

What does the US employer need to handle?

The employer's responsibilities depend heavily on the country where the employee is actually working. A company hiring someone to work inside the US deals with US payroll and employment requirements. A company allowing an employee to work from a foreign home can face a different set of local rules, including payroll withholding, social-security contributions, registration or permanent-establishment issues.

Form I-9 is specifically for employment in the United States. USCIS guidance says employers must verify identity and employment authorization for people they hire for employment in the United States. That does not answer the foreign country's employment-law or tax requirements.

Can I work remotely for a US company from Canada or Germany?

Possibly, but the answer is not simply “yes because the employer is American.” You need to separate three questions: are you allowed to perform work where you physically live, how does that country tax the work, and how will the US employer handle payroll or a local employment arrangement?

For a US citizen, the US federal tax return generally remains relevant. The foreign country may also tax the employment income under its own domestic rules. The correct outcome can require treaty analysis and payroll advice rather than a single US-only answer.

What about an academic or postdoc job?

For a US citizen applying for a US academic or postdoctoral position, the phrase “Are you legally eligible to work in the United States?” is generally answered on the basis of US citizenship: yes. The institution will still complete its normal employment verification process.

If the role will actually be carried out abroad, however, the employer may have a different set of requirements. The safest wording is to answer the legal question asked—work authorization for the location of employment—and separately disclose a foreign working arrangement if the institution requests it.

What records should a remote worker keep?

Dates and locations where the work was physically performed.
Employment contract and pay records.
Foreign tax returns and evidence of foreign tax paid.
Travel records if a physical-presence test may matter.
Bank and brokerage records for foreign accounts.

US persons with certain foreign financial accounts can also face separate reporting. The IRS says an FBAR is generally required where the aggregate value of qualifying foreign financial accounts exceeds $10,000 at any time during the calendar year. That is a reporting test, not an income-tax test.

Worked example

Illustrative 2026 remote-work case: A US citizen lives and works in Canada for a US employer and earns $120,000 during 2026. The salary remains relevant to the US federal return because the IRS taxes US citizens on worldwide income. The worker may be able to claim the foreign earned income exclusion if all eligibility tests are met; the 2026 maximum exclusion is $132,900, so the salary is below that ceiling, but the ceiling alone does not prove eligibility.

If the worker instead earns $150,000, the amount above the maximum ceiling would be $17,100 before considering any other rules or limitations. The example still does not calculate the final US tax bill, because filing status, deductions, credits, foreign taxes and qualification for the exclusion can change the result.

Can a US citizen work for a US company while living abroad?#

A US citizen can generally work for a US company, but living abroad introduces a separate set of local-law and tax questions. US citizenship keeps the federal filing obligation in view, while the country where the work is physically performed may impose its own work authorization, tax and payroll requirements.

Do I still pay US tax if I live and work outside America?#

Generally yes for a US citizen or resident alien. The IRS taxes worldwide income, although qualifying taxpayers may have access to the foreign earned income exclusion or foreign tax credit. Those benefits have eligibility and calculation rules, so moving abroad does not automatically make US tax disappear.

What is the foreign earned income exclusion for 2026?#

For tax year 2026, the IRS maximum foreign earned income exclusion is $132,900 per qualifying person. That is a ceiling, not an automatic deduction. You still need a qualifying foreign tax home and must satisfy the applicable bona fide residence or physical-presence rules.

Does my US employer need to use Form I-9 if I am working abroad?#

Form I-9 is designed for employment in the United States. USCIS requires US employers to verify identity and employment authorization for people they hire for employment in the United States. A worker based abroad also needs to consider the employment and payroll rules of the country where the work is actually performed.

Can I work remotely from Canada for a US employer?#

Possibly, but the employer and employee need to address Canadian rules as well as US tax filing. The fact that the employer is American does not decide Canadian work authorization, payroll, income tax or social-insurance obligations. Treat the physical work location as a key part of the analysis.

Can I work remotely from Germany for a US company without a German subsidiary?#

The lack of a German subsidiary does not by itself make the arrangement illegal or tax-free. German work authorization, local employment rules, payroll treatment and possible employer obligations need to be considered, alongside the continuing US tax rules for a US citizen. Cross-border payroll advice is often needed.

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Next question →How many citizenship can you hold in the United States?

Sources

Figures were checked against these sources before publication. If a rule changes, we update the page and show the new date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.