Will the US make me pay income tax on money I earn in Nicaragua?

The answer here is that the US will possibly make you pay income tax on money you earn in Nicaragua. You must for sure report all income made in Nicaragua on your US return.  However, the odds of you owing taxes on that income are slim. This is especially true if you are already paying tax on that same income to Nicaragua because if you are paying tax already then you can use a Foreign Tax Credit to offset any US taxation.

The answer here is that the US will possibly make you pay income tax on money you earn in Nicaragua. You must for sure report all income made in Nicaragua on your US return.  However, the odds of you owing taxes on that income are slim. This is especially true if you are already paying tax on that same income to Nicaragua because if you are paying tax already then you can use a Foreign Tax Credit to offset any US taxation.