Paying taxes working abroad while on a Green Card?

[Grickan 0]

I am a current green card holder, but I am considering an offer to work in Sweden for a couple of years. Will I get double taxed on the income I make in Sweden during these two years? There must be some type of tax treaty between the two nations that allows me to work in Sweden and not pay taxes in the US? I will be filing a joint tax return with my american wife here in the US.

[DJ&L 83]

I am a current green card holder, but I am considering an offer to work in Sweden for a couple of years. Will I get double taxed on the income I make in Sweden during these two years? There must be some type of tax treaty between the two nations that allows me to work in Sweden and not pay taxes in the US? I will be filing a joint tax return with my american wife here in the US.

If you are a US citizen or a Resident Alien, your worldwide income is subject to U.S. income tax regardless of where you reside. So you would need to report that income on you US income tax return. However, you may be eligible to take a tax credit if you are required to pay income tax in Sweden. This Tax Credit can be a direct offset of your income tax here in the U.S. So, if you paid $10,000 in income tax in Sweden you could offset your US taxes by $10,000.

That being said, the rules are complex and I don't know how it could be impacted by the fact that your wife will still reside in the US and have US income.

But, in general, yes there is a tax treaty between the US and Sweden and, yes you can take a tax credit if you pay INCOME tax in Sweden.

I would suggest consulting a tax professional for more detailed advice.