What Is IRS Publication 516?

IRS Publication 516 is a document published by the Internal Revenue Service that details the income tax requirements for United States citizens working for the government in a foreign country. Tax rules applying to U.S. citizens working abroad are fairly similar to those followed by citizens working at home, though some expenses are treated differently. The filing date for a U.S. tax return is typically April 15th.

Understanding IRS Publication 516 (U.S. Government Civilian Employees Stationed Abroad)

U.S. citizens are taxed on their worldwide income. Those working in territories considered U.S. possessions—Puerto Rico, American Samoa, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands—are not subject to the guidelines in IRS Publication 516, and should use IRS Publication 570 (Tax Guide for Individuals with Income from U.S. Possessions).