Taxation of u.s. citizens and residents (1 of 3) U.S. citizens and resident aliens taxed on worldwide income Income earned in foreign countries or U.s. possessions receives special treatment The foreign tax credit permits U.s taxpayers to avoid double taxation4 Taxation of U.S. Citizens and Residents(1 of 3) U.S. citizens and resident aliens taxed on worldwide income Income earned in foreign countries or U.S. possessions receives special treatment The foreign tax credit permits U.S. taxpayers to avoid double taxation