What is not a joke, sadly, is the long list of misconceptions which many Americans abroad have about their tax obligations. You may have seen this short list before, but these most common of US tax filers' errors bear seasonal repetition. The IRS doesn't know where I am. This includes using passports to find people. My income from renting my house back in the States, interest from my bank, and the profits on my mutual funds and CD's are covered by my deduction while I work overseas, anyway.
Passive income is bank interest, capital gains, and non-work related unearned income.
Regardless of where it accrued, it is subject to US tax - although you may be able to claim any foreign taxes as a credit. Not necessarily, though. My children don't have to file a tax return on their part-time jobs or bank account interest or the dividends on those shares their grandparents gave them. If the child is 14 or older but still your dependent, the maximum child's deduction is the single person's allowance OR the earned income, whichever is less. As always, please note that all comments and explanations given in this column are just a general guideline.