Hi there,
I'm a US Green Card holder and considering an opportunity in Singapore. Is it true that I will need to pay Singapore taxes ~ 20% as well as US taxes ~ 40% less an 80 grand deduction off my my gross income? Is that the price of hanging on to my Green Card or does the same global tax also apply for US citizens? Thanks a lot.
~Melvin
2006-10-20 08:51:14 · 3 answers · asked by Melvin 1 in Business & Finance ➔ Taxes ➔ Singapore
I've researched the 80k deduction from IRS form P54. My understanding is that if I make 100k in Singapore, I can deduct 80k and then pay US taxes (~40%) on the remaining 20k.
Any advise on where I can get the details of the foreign tax credit for Singapore? So if I make 100k in Singapore and pay 20k in Singapore taxes, where does that leave me on US taxes? Thanks a lot.
2006-10-22 18:08:55 · update #1
Yes, it is true that citizens and green card holders must pay tax on worldwide income. However, the tax may not be as bad as you think. You are allowed a credit for foreign taxes paid on foreign source income. In your case, you would pay US tax on everything you made in Singapore, less the tax you paid to Singapore.
Surrendering your green card does eliminate this taxation, but losing the Green Card may be the higher cost.
2006-10-20 15:21:29 · answer #1 · answered by tax_black_belt 2 · 0⤊ 0⤋
Forget about tax implications for a moment. If you don't live in US for more than 6 months per year, you can loose your green card. I don't think that's worth it. You may want to stay put until you obtain US citizenship.
Best wishes.
2006-10-25 15:10:50 · answer #2 · answered by JQT 6 · 0⤊ 0⤋
i dont think you pay any taxes on a green card
2006-10-27 18:17:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋