Legal US Resident earning money abroad?

Question

I have tried to figure out the IRS website, but can not make sense of it. If I am working overseas from January to end of July being paid by another country whilst working in another do I have to pay tax to the US? if the country I am being paid by pays it into a bank in that country and I transfer money, would I declare it, or better to just have it paid direct into a US bank and they see it, or do I also have to declare it. Somewhere I read it said up to 85.000 and you do not have to pay tax if your out a whle year. Anyone good on tax rules ?

Answer 1

I thought you did not

Answer 2

If you only lived and worked outside the US from Jan to Jul, you will not qualify for the Foreign Earned Income Exclusion. You must either have a bona-fide residence in a foreign country for the entire year or be present in a foreign country for at least 330 days out of a continuous 12 month period. That's the $85,000 you heard about.

You can take a credit on your US tax liability for the foreign income taxes that you paid. File Form 1116 with your Form 1040 (NOT 1040-EZ!) tax return to claim the credit.

It doesn't matter whether your pay is deposited into a US bank or a foreign bank. If you have it paid into a foreign bank it is NOT taxed again when you transfer the money back to a US bank.

Answer 3

1. A U.S. citizen or permanent resident must file his return in the U.S. if the world wide income exceeds the filing requirement.

2. If you qualify, you may be able to exclude your earned income up to $85,000. For this you will complete Form 2555.

3. If you could not exclude all your income or some of your income and ff you paid taxes in the foreign country and the country has tax treaty with the United States, then you claim Foreign Tax Credit.

4. 1f you have foreign bank account or have invested in a foreign country, and the total amount at any time during the year exceeds $10,000 then you must complete Form TD F 90-22.1 and File with the Department of Treasury by June 30, 2008 (for year 2007).

Answer 4

I think that all these Mexicans cut into the labor force that many, many on waiting lists for years can not get in because what most people here do not know is the USA limits each year how many legals they will allow in from any set group classification or country. The USA even has a lottery for those waiting to get here to bet the little money they have for a chance to climb to the top of the waiting list..This make you proud of your government? Don't believe me, check it out yourself. You do not have to be Hispanic to do cheap labor jobs, there are millions in Asia or Africa that would do about anything for a chance to do that and feed their families too..Think about it The person above mentions the minimum wage issue, here's what should be done. 1. The minimum wage shall be a set law and rate made into an admendment to the Constitution. It will state that "we the congress" do decide that a minumum living wage shall now be based and tied to an annual cost of living index that will fluctuate annually with the figures published and payable by any and all employers who pay their employees on a hourly basis or a salary.This minimum rate shall be at an entry position only and any employee that has increased responsiblites or working hours is as well entitled to a pay raise minumum % here forth included. Any company or corporation that violates these laws is subject to public disclosure and prosecution with a fine of not less than $100,000 per instance or person or an authorized closing of said employer..Think this would work? I do..

Answer 5

I'm a US citizen also working in a foreign country. If you can, see if you can fill out and give IRS Form 8802 ( http://www.irs.gov/pub/irs-pdf/f8802.pdf ) to the company that you're working for. It's a form that verifies your citizenship, and means that while you still WILL have to pay taxes in the US (and in your foreign country), that you will get a percentage of the taxes paid in the foreign country back upon your return to the US.

Have your company pay your salary into an account in the country that you're staying. When you fill out your 1040EZ (or whichever tax form you fill out), declare the wages you have earned while in the foreign country. I live in Japan, and I've been using Lloyds TSB ( https://www.golloyds.com/en/index.php ) to transfer my money. Once the IRS lets you know how much tax you owe, THEN transfer the money.

No matter how much salary you earn, you will have to pay the IRS. The one perk of filling out a 8802 is that, depending on the country, you can get a refund of the taxes paid to your second country. Granted, it will only be a percentage, but at least you get some back!

I hope that this was helpful for you!

Answer 6

if you send that money back to U.S they will make you pay
the taxes on it.