What if I already pay tax on certain things in my home country? How do I avoid double-taxation?

Fortunately, the US and most other countries have a system in place to reduce or eliminate double taxation. This usually happens by claiming “foreign tax credits” on your tax return for taxes paid to the other country. You may need to claim the foreign tax credits on your US return or on your home country tax return, depending on which country has the primary right to tax the income.