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do i still have to pay taxes if i work outside the US?

2006-08-03 15:30:20 · 3 answers · asked by Anonymous in Business & Finance Taxes United States

3 answers

Yes you do. However, you will be allowed an exemption. Depending on your salary, the exemption can be more than your salary which would mean that no tax is due. Also, you should be allowed a credit for the taxes paid to the country where you live.

2006-08-03 16:37:20 · answer #1 · answered by Steve 6 · 0 0

If you are a United States citizen or a resident alien who lives and works abroad, you may qualify to exclude all or part of your foreign salary or wages, or amounts received as compensation for personal services rendered from your income. If you are a United States citizen with a tax home in a foreign country and you meet the bona fide residence test or physical presence test, you may exclude up to the maximum limit allowed for the taxable year. Resident aliens of the United States with a tax home in a foreign country may be eligible for the exclusion if they meet the physical presence test, or if they are citizens or nationals of a country with which the United States has an income tax treaty with an applicable nondiscrimination clause, and they meet the bona fide residence test. Specific guidelines for these two tests are covered in Topic 854. The maximum annual exclusion is prorated on a daily basis if there is any part of the year that you do not qualify under either test.

If you qualify under either test, you may also claim an additional exclusion based upon what you spend for foreign housing. The foreign earned income exclusion and the foreign housing cost amount exclusion are figured on Form 2555 (PDF), which must be attached to Form 1040 (PDF). However, if you claim only the foreign earned income exclusion, you may be able to use Form 2555-EZ (PDF) instead.

If you would like more information on who qualifies for the exclusion, refer to Topic 854. For more information on what type of income qualifies for the exclusion, refer to Topic 855.

You may also refer to Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

If the information you need relating to this topic is not addressed in Publication 54, you may call the IRS International Tax Law hotline. The number is area code (215) 516–2000. This is not a toll–free number.

2006-08-04 07:30:42 · answer #2 · answered by BigAl 1 · 0 0

I think that if you work outside the US then if you also live there you pay taxes wherever you live if they tax you. Otherwise, I don't see how the US can tax you but they'll probably try to find a way...

2006-08-03 16:07:44 · answer #3 · answered by Anonymous · 0 0

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