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The old adage is crime doesn't pay, only one certainly can wonder sometimes about the accuracy of it given the number of politicians that typically be online criminals! Regardless, the fact you are making money from against the law doesn't mean you don't have to pay taxes. That's right. The IRS wants its unfair share of the ill gotten gains!

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Julie's total exclusion is $94,079. On her behalf American expat tax return she also gets to claim a personal exemption ($3,650) and standard deduction ($5,700). Thus, her taxable income is negative. She owes no U.S. value-added tax.

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