[ios84dev]

The US wouldn't get a cut of that unless the exchange rate really sucked and that £20,000 was worth more than $90,000. Plus any UK taxes you paid on it (assuming there is a taxation treaty between the UK and US) are deductible from your US tax liability.

In general you have to either live in a country that doesn't have a tax treaty with the US or not pay taxes on your income in the country in which you reside.

[hnwh]

That is only true for "Earned Income" if he's not self employed. If he's a web contractor for example, he still has to pay self-employment taxes %15.3 of his UK earned income received from his UK clients, EVEN IF HE LIVES IN THE UK... to the US... fair? really?

http://www.irs.gov/publications/p54/ch03.html#en_US_2011_pub...