Exemption Under Tax Treaty cheap hotel in SopotIf you are from a country that has a tax treaty with the UnitedStates, you should first look at the treaty to see if there is aprovision that exempts your income. The income of U.S. citizens andresident aliens working for foreign governments usually is not exempt.However, in a few instances, the income of a U.S. citizen with dualcitizenship may qualify. Often the exemption is limited to the incomeof persons who also are nationals of the foreign country involved. Resident aliens from France.The United States and France have come to an agreement to relievedouble taxation of U.S. permanent residents who receive wages andpensions for governmental services performed for the government ofFrance. Generally, this income is taxable in the United States andFrance. However, the United States will allow a credit for taxes paidto France on this income.