You can renounce citizenship. There is a large multithousands dollar "fee" to do so. And if they find out you did so to avoid paying taxes (ex. renouncing citizenship and then turn around to cash out some Bitcoin) they can still go after you for taxes.
Most citizens never hit the threshold to actually pay except if you file from a known tax haven. Income up to $115k is untaxed and any other taxes you do pay are deductible.
"Income up to $115k is untaxed and any other taxes you do pay are deductible."
It's not as simple as it first seems.
If you claim the foreign earned income exemption (FEIE) so you don't pay anything on the first $115k or whatever, then you can't claim a credit for all the taxes you paid in the country where you live. You can only claim a portion.
So, if your income goes up above some certain amount, you're better off (lower US tax bill) giving up the FEIE so you can get a credit for all foreign taxes paid.
But, if you do that, then you can't claim FEIE again within 5 years, unless you get special permission from the IRS. To apply for this permission (with no guarantee) you must pay a fee of a few thousand USD to the IRS.
> $400 per year in time and money to file a tax return
That number seems pretty high unless you have very complicated income (in which case you likely have a lot of money too)
Also worth mentioning is that Foreign Income is taxed differently, so while you technically still have to pay taxes, I believe for most people who work mostly in a foreign country don't have to pay very much.
Yes, like, say, having an accountant that can read and understand your taxes where you live in Italy and then use that information to file US taxes. And of course they'll need to understand the tax treaty between the two countries so you don't end up paying extra. Of course it's complicated and a huge pain in the ass! And that's with a relatively normal, stable, well-established country with a lot of US citizens living in it.
I should add: $400 is also a bigger deal when you live somewhere and don't earn as much as a software developer in the US.
If you're a resident of the US with not too complicated income then this is true.
Working in a different country means you need to know _their_ tax laws, how much you need to pay the US, etc. It becomes complicated quickly, and if you're trying to minimize what you pay in taxes it's another story altogether.
Most citizens never hit the threshold to actually pay except if you file from a known tax haven. Income up to $115k is untaxed and any other taxes you do pay are deductible.