You've guessed right! I have a question. :)
So my favorite actress is living in the UK but I guess she's still American even though she's been over there for like 5 years, though I'm sure that makes no difference. Anyway... Tax time and all that good stuff is going on.
Does she have to do the whole filing taxes by the 15th...well 17th this year? That goes for anyone I guess, if they are American and living in another country. Do they have to worry about all of that stuff even though they're wherever they are?
Hey, I didn't say it would be a good question! :)
2007-02-25 13:22:36 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
US Citizens are subject to US taxation on their world-wide income form all sources. Where they live does NOT matter.
Some income may be excluded from US tax but the amount is limited -- somewhere around $87k or so. There are strict rules on this and a timely return is mandatory to claim the exclusion.
Alternatively they can take a credit for foreign income taxes paid. If you live in Europe, that's usually the better way to go since taxes there are much higher than in the US for the most part.
UK taxes are quite a bit higher than taxes in the US so there's no tax benefit from living there. I used to live in the UK, trust me on that!
If you're outside the US on the filing deadline, you get an automatic 60 day extension of time to file.
2007-02-25 14:00:18 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Taxes follow you wherever you go. When you file from another country they give you a "world tax" account number to use in place of your social security number or along with your social security number. You have to file taxes in the country where you have citizenship and in the country in which you reside. That's assuming you have income from both countries.
2007-02-25 21:32:47 · answer #2 · answered by sexmagnet 6 · 0⤊ 1⤋
Yes. If you are a citizen and have assets, you pay.
2007-02-25 21:26:39 · answer #3 · answered by Mmmmm 7 · 0⤊ 1⤋