The currency you are paid in and the manner in which it is paid to you are of no tax relevance. (You could be paid in chickens delivered to a coop with your name on it in Zimbabwe and it would receive the same tax treatment as Euros deposited to a bank account in Bielefeld.)   For basic information concerning your US taxation situation while abroad download and read Publication 54:   www.irs.gov/pub/irs-pdf/p54.pdf Publication 54 Cat. No. 14999E Tax Guide for U.S. Citizens and Resident Aliens Abroad