What are the tax consequences for income overseas? I will not be filing in China but want to know about the U.S. I know that up to $84,000 dollars in foreign income can be tax free if you stay over one year but I will only be here 6 months. Any help would be appreciated.
2007-03-25 01:29:19 · 5 answers · asked by China 1 in Business & Finance ➔ Taxes ➔ United States
Is it a Chinese company or a USA company? If USA, you have to report, if Chinese Company, Convert to RMB and let it sit in the Bank of China.. You'll be thanking your self in three years..
2007-03-25 15:16:40 · answer #1 · answered by Tom 5 · 0⤊ 0⤋
Your information is outdated. It is no longer true that the first $84,000 (approximately) of foreign income is excluded when foreign residency requirements are met.
The tax break now applies only if you make more than $84K of foreign income, and the break applies on the last income, not the first income.
In any case, your income will be taxed as any other income, but you may be exempt from SS and Medicare. Your employer will know that.
Further details are in IRS Pub 54, Tax Guide for US Citizens and Resident Aliens Abroad.
2007-03-25 08:01:57 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Take a vacation on the Government. If you are outside the US, 352 days of any consecutive 365 days you get the exemption for any foreign income made in that period. Figure out what the tax would be on your foreign income if you came back and reported it. If you can find a place to vacation for something near that number go there and hang out. My son did exactly this and saved thousands above his cost of the vacation. In your case there may not be enough income for this to work well but it is a thought.
2007-03-25 04:47:10 · answer #3 · answered by ? 6 · 0⤊ 1⤋
I lived in Shanghai for 2 years and that i'm shifting quickly. you will possibly desire to hold lots of money for the reason which you will possibly probable % to save on the pretend marketplace, consume out, etc. Btw, Shanghai is definitely somewhat exciting.
2016-10-20 10:05:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Hide it! Just kidding. What will be your expenses vs. what you earned. They might end up owing you. Anyway, I think you should consult an accountant.
2007-03-25 01:36:31 · answer #5 · answered by mari 2 · 0⤊ 0⤋