American expat living in Italy tax question

If your total worldwide income exceeds the filing requirement, you must file your U.S. tax return. On your return, you must report your world wide income.

If you paid taxes in the foreign country, you will claim credit for taxes paid in the foreign country by filing Form 1116 or can file form 2555 Foreign Earned Income Exclusion. Even if you have a filing requirement, the chances are you will not pay any U.S. tax or pay very little U.S. tax.

Another filing requirement is Form TD F 90-22.1. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income