While the current nursing shortage provides many opportunities for foreign nurses to come to the United States, American healthcare professionals have not historically considered overseas assignments on a routine basis. In the past, only a few countries—like Saudi Arabia—recruited U.S. nurses, but that process is slowly changing. Other countries, such as Canada, Australia, and the United Kingdom are now seeking the services they can provide, opening many possibilities for these clinicians.

If you choose to work internationally, you not only will be presented with exceptional experiences, but also will face some unique tax laws. Here are a few things to consider, should you plan on accepting assignments abroad:

Tax treaties. The most important document you need to review is a copy of the tax treaty between the U.S. and your assignment country. International Tax Treaties are arranged in a particular order by "articles." Each article addresses specific tax items like residency, types of income, and investments. When internal tax laws of countries disagree or overlap, the tax treaty takes precedent. In other words, tax treaties trump domestic law. For example, the U.S. considers anyone living in this nation more than 183 days to be a resident for tax purposes. If the individual is also a tax resident of another country by that country's standards, the tax treaty will determine tax residency, despite U.S. decrees. In these cases, you would have what is called a "treaty-based return."

Required tax returns. The U.S. is unique among nations as it claims tax jurisdiction on citizenship versus residency. American citizens or green card holders (permanent residents) are required to file an annual tax return, even if they have lived in a foreign country for a decade. This requirement ends only when citizenship has been revoked or a Visa allowing permanent residency has been terminated.

Foreign income exclusion. Tax laws have encouraged international employment by offering an exclusion of $80,000 of income earned abroad when the taxpayer stays in a foreign country for a year or more. However, being exempt from U.S. tax does not mean you can negate taxes imposed by another country. Of course, you may choose to work in a region, like Saudi Arabia, that does not impose an income tax, but if you work in one that does, you will be subject to that country's tax laws.

For more information, consult IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.