Afterall, I am not using any property of US. For those who sells things online in another country but are US citizens or ex patriats, how do u guys file taxes?
2007-11-07 12:31:19 · 2 answers · asked by Confused 1 in Business & Finance ➔ Taxes ➔ United States
The IRS taxes US citizens on world-wide income.
Therefore, these sellers report their income the same way you do--they put it on a schedule C and pay self-employment taxes. If they are physically outside of the US for 11 months out of the year, they can exclude some (maybe all) of the income with the foreign earned income tax excluson. (The SE Tax is *not* excludable.)
If they cannot meet the requirements for this exclusion and end up being taxed twice (once by the US, the second time by the other country), they may be able to take a foreign tax credit.
An "expat" is someone who has actually given up their US citizenship. The IRS frowns on this and reserves the right to continue taxing them for another 10 years if their income/assets are so high it's clear the goal was to avoid taxes.
2007-11-07 18:20:30 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you are a US citizen, your worldwide income is subject to federla income tax.
2007-11-07 12:44:49 · answer #2 · answered by Judy 7 · 0⤊ 0⤋