The short answer
Yes, you still file a US return, because the US taxes citizens on income from anywhere. In high-tax countries like China and most of Europe, the foreign tax credit usually cancels the US federal tax. The bigger risk is your home state: on a $1 million net contract in China, a Texas resident keeps about $900,000 after a 10% agent, but a player who is still a California resident owes California about $191,766.
Numbers from the KeepMyCheck calculator using 2026 tax rules. Estimates, not tax advice.
- Net contracts: most deals in Europe and Asia are net, meaning the club pays your local tax. For US taxes, that tax counts as extra income, and you claim it as a credit.
- The foreign earned income exclusion ($132,900 in 2026) needs 330 full days outside the US in 12 months. A season abroad plus a summer at home usually fails, so most players use the foreign tax credit.
- No US Social Security on pay from a foreign club, but no Social Security credits either.
- FBAR: report foreign accounts if they total more than $10,000 at any time.
- Puerto Rico is different: it is a US territory, so the exclusion does not apply.
Related questions
- Do I pay state taxes while playing overseas?
- If you are still a legal resident of a state with income tax, often yes, and most states do not credit foreign tax. Some states, like California and Virginia, are hard to leave on paper.