True or False: A US citizen working abroad must still comply with US tax law.

A US citizen working abroad must still comply with US tax law because the United States taxes its citizens on their worldwide income, regardless of where they reside. This means that even if a US citizen is living and working in another country, they are required to report their income to the Internal Revenue Service (IRS) and may owe taxes on it. The US tax system has specific provisions, such as the Foreign Earned Income Exclusion and the Foreign Tax Credit, which can help mitigate double taxation for citizens living abroad. However, the requirement to file tax returns and report income remains in place, emphasizing the unique nature of the US tax system compared to many other countries that tax based on residency.

The other options suggest conditions that are not fully reflective of the tax obligations for US citizens abroad. For example, many assume that it could depend on the country in which they are working; however, US tax obligations remain consistent regardless of foreign tax laws. Additionally, while there are income thresholds for certain exclusions, the obligation to comply with US law does not depend solely on income level.