As a US citizen, I am doing freelance work for a German company in Germany. Do I need to pay US taxes for this work if I am not working/living in the US?
2007-07-04 01:13:00 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Not federal, but depending on the state, like CA for example, they might try to get taxes from you.
2007-07-04 01:24:24 · answer #1 · answered by Hans B 5 · 0⤊ 2⤋
As a US citizen you are subject to US taxation on your world-wide income from all sources regardless of where you live.
You may be eligible to claim the Foreign Earned Income Exclusion on all or part of your income if you meet certain foreign residency or physical presence tests. Or you may take a credit for the German income taxes paid. German income taxes are generally higher than US taxes so the credit may be worth more to you.
Get a copy of IRS Pub 54 from the IRS website. It will tell you everything that you need to know about foreign-source income and US tax laws.
You will also have to pay any state income tax in the state of your legal residence.
2007-07-04 05:56:06 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
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2007-07-05 19:13:16 · answer #3 · answered by GlobalJobsTrading.com 2 · 0⤊ 0⤋
Depends on the state, but if you qualify for the federal tax exclusion you probably do for state as well.
As for federal, you probably will not owe anything to the US federal government because of the tax exclusion, but you must still file to qualify for the exclusion.
2007-07-04 05:10:04 · answer #4 · answered by Muaranah 3 · 0⤊ 1⤋