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Just wondering since on earth depending where you are income earned outside of the U.S. can be tax free atleast up until a certain amount is earned.

2007-05-25 10:43:52 · 5 answers · asked by Anonymous in Business & Finance Taxes United States

5 answers

Ordinarily we say that US citizens and resident aliens are taxed on their "worldwide" income; I guess that is a bit out of date. They are taxed on income from whatever source, so income earned in space is taxable. You refer to the "foreign earned income exclusion" as a provision which exempts a certain amount of foreign earnings from US tax. However, in order to be untaxed, the income must be earned in a foreign country, not just outside the US. In addition, there are requirements as to the length of stay in the foreign country, etc. Finally, income earned in space by a US resident is generally considered to have been earned in the US for income tax purposes.

2007-05-25 11:48:34 · answer #1 · answered by TaxGuru 4 · 1 0

As US citizens, their income is taxed like anyone else's is without regard to where it was earned. Ditto for state taxes; if you're a legal resident, you pay the tax regardless of where you earn the money.

2007-05-25 11:31:00 · answer #2 · answered by Bostonian In MO 7 · 1 0

Yes they pay taxes while in space. But the good news is that they would get travel expense deductions for any out of pocket expenditures not reimbursed by the government.

2007-05-25 13:17:47 · answer #3 · answered by ? 6 · 0 0

I think they pay taxes for the place they live on Earth when their not is space, like Texas, Illinois, Washington DC, etc unless they are like Lisa Nowak Aliens.

2007-05-25 11:18:58 · answer #4 · answered by hopeisathingwithfeathers 3 · 1 0

yes they have to be taxed an whatever becuase it is a U.S territory on space

2007-05-25 10:49:19 · answer #5 · answered by chuks 2 · 0 4

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