i am a us citzen but i work in china. i heard if one takes up residence in a country outside of the us for ten months or longer they dont owe uncle sam a penny for that year. every month my income is sent to citi bank in the u.s. what is the international tax rule for americans living abroad for 10 months or longer.
2006-07-23 23:41:36 · 7 answers · asked by willy 1 in Business & Finance ➔ Taxes ➔ United States
As a US citizen, you are subject to tax on your WORLDWIDE income, regardless of where it is deposited. You may, however, be eligible for the "foreign earned income exclusion" which allows you to exclude about US$90,000/year of salary only from US tax. See IRS form 2555 for more information at www.irs.gov
2006-07-24 04:56:18 · answer #1 · answered by taxmannyc 3 · 1⤊ 0⤋
If you work outside the US, for more than 6 months of the year, you will not have to pay US income tax on that income.
But since you are sending the money to a US bank, instead of the World Bank, you will have to file a Schedule B for interest income, plus you're not getting nearly as much interest as you would have gotten from the World Bank.
2006-07-24 01:06:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You are a US citizen. US citizens are taxes on their WORLDWIDE income. There are some credits etc available to you, but tax - free...no.
2006-07-24 03:03:40 · answer #3 · answered by extra_37 4 · 0⤊ 0⤋
out of country work = out of country tax
2006-07-23 23:49:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋
yes you have to pay taxes since your funds were sent here
2006-07-23 23:45:16 · answer #5 · answered by JULIE 7 · 0⤊ 0⤋
You need professional Advice.
2006-07-24 02:37:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
taxmannyc is 100% correct
2006-07-24 08:41:10 · answer #7 · answered by Dwight D J 5 · 0⤊ 0⤋