Can someone shed some light on how taxation works for US Citizens working abroad, especially if you cross the 100K?? foreign income exclusion.
From my limited understanding, US tax laws severely punish US Citizens working abroad, much like US companies.
So how does it work for high earners living in London let's say? You have to pay both UK and US taxes - are you screwed?
I googled this, but found no clear answer, so would appreciate if someone could explain.