[ahoyhere]

As far as I can tell - having moved to Austria and acquired a tax specialist - this is backwards.

The US gets first dibs. At least they do in my situation. Then the full amount I pay to the US in tax (100%) is removed from the taxes I owe in Austria.

Simple example: Austria says I owe 20,000 euros. US says I owe $15,000. I pay the US $15,000. My tax burden in Austria is now approximately 20,000 - 10,000 euros (ballpark currency exchange) = 10,000. (This is assuming you crest theearned income waiver for expats, which is about $85,000 USD now.)

Basically, though, you have to hire a tax specialist. There's no way to manage it simply. And tax specialists with international experience are hard to find, but if you're coming from the US you'll have an easier time than if you're coming from a smaller country. Your best bet would be to contact one of the larger international firms, e.g. Deloit. I had to search for 9 mos to find one, myself.

(As an aside, I'm outraged that I have to pay US taxes at all.)