If you are a U.S. citizen or a U.S. Greencard holder and you live abroad, you are taxed on your worldwide income. However, you may qualify to be excluded from income up to $102,700 (for 2017) of your foreign earnings. In addition, you can exclude or deduct certain foreign housing amounts.
a U.S. Greencard holder who is a citizen or national of a country with which the U.S. has an income tax treaty in effect (the Netherlands and the U.S. have concluded such treaty) and who fulfills the bona fide residency test; or
a U.S. citizen or a U.S. Greencard holder who fulfills the physically presence test
Usethis diagram from the IRS Publication 54 to check whether you can claim either Exclusion or the Deduction.
OnestopTaxPrep has over 18 years of specialization in providing combined Dutch and U.S. tax preparation and consulting services. This specialization has assisted U.S. nationals living and / or working in The Netherlands and Dutch nationals living in the U.S.A.