If a U.S. citizen lived and worked in France, do they need to report their income earned outside the U.S.?

A U.S. citizen is required to report their worldwide income, including income earned while living and working in France. This requirement stems from the U.S. tax system, which mandates that citizens and residents must report all income regardless of where it is earned. This includes not only wages but also other forms of income such as rental income, dividends, and interest.

The rationale behind this policy is that U.S. citizens and residents are subject to U.S. taxation on their global earnings. However, they may be eligible for certain tax benefits, such as the Foreign Earned Income Exclusion or the Foreign Tax Credit, which can reduce their tax liability on foreign income. Therefore, regardless of where the income is generated, it must be reported to ensure compliance with U.S. tax laws.