---
title: "As a U.S. citizen, how do taxes work?"  
description: "As a U.S. citizen, how do taxes work?"  
author: "Sandra Emily"  
published: 2022-05-18  
canonical: https://answers.mindstick.com/qa/97449/as-a-u-s-citizen-how-do-taxes-work  
category: "troubleshooting"  
tags: ["troubleshooting", "cryptocurrency"]  
reading_time: 1 minute  

---

# As a U.S. citizen, how do taxes work?

As a U.S. [citizen](https://answers.mindstick.com/qa/41216/what-is-the-japanese-american-citizen-s-league), how do [taxes](https://answers.mindstick.com/qa/95934/who-is-appointed-as-the-chairman-of-the-central-board-of-indirect-taxes-and-customs-cbic) work?

## Answers

### Answer by Hitesh Vohra

- Regardless of where they live, all **US citizens** and green card holders must file their tax returns in the United States on their worldwide income. Unless a treaty, statutory exception, or foreign tax credit applies to reduce their US tax burden to zero, they must pay taxes on such overseas income.
- For tax purposes, you are considered as if you were a US citizen or a green card holder living outside the country. As a result, you must pay taxes in the United States on your worldwide earnings. At the same time, if you spend more than 182 days in India during a fiscal year, you are considered an Indian resident.

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**Read More: [What will be the effects of a ban on cryptocurrencies?](https://answers.mindstick.com/qa/97461/what-will-be-the-effects-of-a-ban-on-cryptocurrencies)**


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