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Dual citizen working in Italy...where is the best tax rate?

Hello everyone! I am a dual American-Italian citizen, I grew up in Italy but now I live and work in San Francisco. I haven't registered at AIRE yet and not really exited to do it if not strictly necessary.
I am going to move back to Italy this March to work for the Venice Biennial on a 3 months project. I prefer to do my income taxes in US but really don't know how to manage this. Does someone know which would be the best move?
1.I live here now and have my main residence in San Francisco but still resident in Italy as I have never registered at AIRE;
2. In 2009 I will mainly work in US and I prefer to do only one income tax.
I have been told that there is no need to change my main residence in Italy and simply have them hire me as American and file my income tax in US including my Italian income. Someone also told me that you do not pay taxes on foreign earning up to $ 88.000
Does someone know better?
I appreciate your help and advise.
Joseph

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Permalink Reply by Matteo Daste on December 15, 2008 at 4:57pm

This is a good question for the CPAs on BAIA Link! I think that as a general rule of thumb U.S. citizens are subject to worldwide U.S. tax on their earnings, unless foreign income exclusions apply. Foreign tax credits may also apply based on treaty. This IRS publication may be a good starting place http://www.irs.gov/publications/p54/ch04.html

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Permalink Reply by lorenza cerbini on January 2, 2009 at 8:41am

ciao

io non mi sono iscritta all'Aire per 10 anni poi mi sono iscritta l'anno scorso e ho cambiato residenza per evitare confusione. Di fatto, si pagano le tasse nel Paese dove si risiede per oltre 180 giorni l'anno. Secondo me ti merita pagarle negli Usa, dato che puoi detrarre tutte le spese della libera professione. Comunque per non avere guaia fatti fare le tasse da un commercialitsa che conosce bene il trattato bilaterale tra Italia e Usa

In bocca al lupo

lorenza cerbini