U.S. individual income tax return

If you live in the Netherlands as a U.S. citizen or a resident alien, you are taxed on your worldwide income. However, the income earned in the Netherlands may be excluded up to an annually set threshold amount of $107,600 (2020). In addition, you can exclude or deduct certain amounts for Dutch housing.

Regardless of whether you have income tax due in the United States, you are required to file your income with the U.S. IRS. The rules for income, estate, gift tax returns and paying estimated tax are broadly the same as if you were living in the United States. Your worldwide income is subject to US income tax regardless of where you reside.