I work in International waters and do not visit or live in a residence in the United States for more than 4 weeks a year. I make about $22,000 a year before taxes working on these ships as an Independent Contractor.
2007-02-19 06:16:04 · 3 answers · asked by Iris G 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
look at the instructions for form 2555
2007-02-19 07:56:24 · answer #1 · answered by smh60437 3 · 0⤊ 1⤋
You're a MA legal resident, so you pay MA taxes. Working outside the state won't get you off the hook with Taxachusetts. The only way out of that is to establish a legal domicile in another state and take the normal actions that a resident of that state would normally take such as establishing a fixed address in the state, getting a state driver's license, registering to vote, and registering your car in the state.
Since you are a US citizen, your world-wide income is taxed by the US. Income earned in international waters is NOT eligible for the Foreign Earned Income Exclusion.
I hope you enjoy your work. At $22k per year, not a heck of a lot will be left after paying self-employment taxes plus Federal and State income taxes.
2007-02-19 14:33:00 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The only way to avoid taxes is to stay out of the US (all 50 states)for more than 12 consecutive months. I'm not sure about territories. Wait another 2 to 3 months.
2007-02-20 01:33:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋