I live in USA, work in Iraq, and am out of country for more than 330 days. I am being paid from an off shore bank account, do I have to pay taxes such as social security, fed, etc. I will not get a W2, only a statement of earnings by email only, IRS is not notified.
2006-09-22 21:02:12 · 3 answers · asked by hpx645 2 in Business & Finance ➔ Taxes ➔ United States
For federal income taxes, you can exclude up to $82,400 of foreign earned income based on the foreign earned income exclusion. There's an additional exclusion for housing. See form 2555.
If you are self-employed, you would still owe the self-employment tax. If you are an employee, it's not your responsibility to pay social security taxes.
The impact on your state income taxes will depend on the state you live in. Some recognize the federal foreign earned income exclusion, others do not.
2006-09-23 00:05:08 · answer #1 · answered by NotEasilyFooled 5 · 1⤊ 0⤋
he source of the income is not a factor. If you are a US citizen, all income worldwide must be considered (note:I did not say reported) for tax purposes. A certain amount of foreign income can be excluded and foreign income tax paid may provide a credit on the US tax return. The IRS FAQ linked below is a much better source than I am.
2006-09-23 09:54:59 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
yep, when you try to bring money back to the US that is when they get you.
2006-09-22 21:10:15 · answer #3 · answered by King Midas 6 · 0⤊ 1⤋