2007-09-12 18:01:11 · 5 answers · asked by drzdenizen 1 in Business & Finance ➔ Taxes ➔ United States
Certainly, as a US citizen you are taxed on income earned anywhere in the world. But with living in a foreign country you might be eligible for foreign income exclusion, depending on your circumstances. I have included a link to that info.
2007-09-13 02:19:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That all depends. How long will you be living there? If you plan on leaving your account the way it is setup now, in the US, then you will be paying taxes no matter where you might be residing temporarily. Just for the simple fact that you apparently have placed your stocks with a shareholder in the US. Find one in the country you are in now if you want to protect some of your money.
The only way you can get out of it is if you plan on staying in that country for some time. Otherwise, every year you will still have to claim that interest from your stocks on your US tax returns. No matter what way you slice it you will be paying taxes. Unless you get a Swiss or other foreign broker who asks no questions and just handles the money for you from a Swiss account, which has better privacy laws.
In any case, if your stocks and funds are now sitting in the hands of a US company, you will keep paying or have to pay at the end of the year.
2007-09-12 18:09:25 · answer #2 · answered by rmkenterprise 3 · 0⤊ 1⤋
Your country of residence does not exclude you from US taxes. You will pay tax on the gain from the sale of stock the same as if you were residing in the US.
If the Dominican Republic also taxes you on your stocks, then those taxes are credited against taxes you owe on your US tax return.
However, there is no exclusion for the income from the stocks because you are not living in the US.
2007-09-12 19:41:06 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
Yes. You have to pay tax on your worldwide income if you are a US citizen. You would get the benefit of foreign tax credit and foreign income exclusion.
2007-09-12 18:09:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Of course you do! US citizens and residents are subject to US taxation on their world-wide income regardless of the source or where they live.
There is no exclusion for unearned income although if you pay foreign income taxes on the income you will get a credit for those against your US tax liability.
2007-09-12 23:35:05 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋