I do not reside in the United States, however, I do maintain a U.S. address (a friend's address actually) so that my U.S. clients can mail my checks and 1099s with ease. However, does this mean I have to pay taxes on this income? What are the exemptions on income for Americans living abroad? In my case, technically I earn my living FROM the United States (my clients are based there) but I work remotely and don't live there.
2006-10-14 02:43:42 · 6 answers · asked by Wendy D 1 in Business & Finance ➔ Taxes ➔ United States
I am assuming you are not American yourself, nor do you have a greencard.
If that is the case, then it depends on what basis you are paid. Royalties and self-employment income are taxed on a source-basis in the US, but there may be treaty with your country of residence that allows you to pay the tax to your home country instead.
If you are an American or greencard holder living abroad, then you must file annual US tax returns on your income. Tax treaties or domestic law in your country of residence may also make this income taxable in your country of residence as well. Most countries grant tax credits for taxes paid in other countries. You will need professional tax assistance to sort out your situation. When looking for a tax advisor, choose one who is versed in both your home country's taxation laws and the US.
2006-10-14 03:24:32 · answer #1 · answered by lizzit 3 · 0⤊ 0⤋
As a U.S. citizen you report and pay tax on worldwide income. If you spent twelve consecutive months abroad and earned income while there you would qualify for the foreign earned income exclusion. Being self employed means that you would have earned income from that activity. The income exclusion only applies to the income tax it does not apply to the self employment tax. You would file your U.S. income tax and take the foreign earned income exclusion on page one of the 1040. You would complete schedule SE and report the tax number on page two of the1040 and that is the SE tax you would owe.
2016-03-28 08:44:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Are you as US citizen. If you are ALL of your income is subject to US tax law but not necessarily to US tax. There are certain exclusions for foreign earned income and credits for foreign taxes paid. I don't know the details, so I provided the link to an IRS FAQ for US Citizens Living Abroad.
2006-10-14 07:45:40 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
You are doing business in the US!
You must pay taxes, regardless where you live.
Research the word "NEXUS" and you will understand.
The IRS is very simple, you earn income in the US you pay taxes.
Good luck
2006-10-14 03:32:40 · answer #4 · answered by Anonymous · 1⤊ 0⤋
According to a Google search for Internal Revenue Service (I.R.S.) they operate a web site at www.irs.gov/individuals/index.html Note the final suffix is: .html, not .com
2006-10-14 03:18:48 · answer #5 · answered by Scoop81 3 · 0⤊ 0⤋
go to irs.gov and research it...dont think so.
2006-10-14 02:46:13 · answer #6 · answered by David B 6 · 0⤊ 1⤋