Job Discussion Forums

anonymous_alaska · Joined: 25 Mar 2004 Posts: 35

I was told by a teacher in the public school system here who was thinking about teaching overseas that a change in the U.S. tax law for overseas workers keeps getting closer. He said already something is moving through the governmental juggernaut so that those who work overseas will have to pay taxes to the U.S. no matter what salary they are making. Has anyone got the status on this? It would be a shame, wouldn't it? Sad

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

That attempt was made last year. It was stopped, probably as a result of all of the letters written by expats (like me).

moonraven · Joined: 24 Mar 2004 Posts: 3094

I have not paid US taxes since 1993. Regardless of how much income I have had. I used to have a tax service in Santa Fe, NM. Accountants don't usually pay taxes anyway....

Gordon · Joined: 28 Jan 2003 Posts: 5309 Location: Japan

Why would you need to worry about making too much to pay US taxes?

What is the limit? $80,000 US?

kev7161 · Joined: 06 Feb 2004 Posts: 5880 Location: Suzhou, China

In one year here, I make less than $8000 US. That is waaaayyyy below poverty level. I would certainly qualify for the Earned Income Credit and the government would give ME money! They sure did last year.

thelmadatter · Posted: Thu Oct 14, 2004 12:58 pm Post subject: EIC

You cant get the Earned Income Credit if you have worked overseas. While I cant really disagree with this, I certainly wouldnt mind having again the $2000 "refund" I got one year while I was a grad student with a kid - nice chunk of change there....

anonymous_alaska · Joined: 25 Mar 2004 Posts: 35

Gordon,

According to this teacher, the U.S. government is trying to do away with the limit. So even if you make $20,000 a year you'll be taxed. I hope all U.S. English teachers write their congressman if this is moving or gets started again. Any watchdogs out there?

moonraven · Joined: 24 Mar 2004 Posts: 3094

Don't panic. How are they going to collect it? I don't think failure to file income tax is an extradictable offense....

leeroy · Joined: 30 Jan 2003 Posts: 777 Location: London UK

My, moonraven! A post without condescending someone (well, almost!)

That must be a first... Keep this up and you might almost become "likeable". Smile

moonraven · Joined: 24 Mar 2004 Posts: 3094

leeroy, I could not possibly care less whether you "like" me or not. This is a virtual site, after all.

It's condescending TO someone, FYI.

ls650 · Joined: 10 May 2003 Posts: 3484 Location: British Columbia

moonraven · Joined: 24 Mar 2004 Posts: 3094

Why worry about it? They have no proof that you worked, made money, owed anything. Some of us are not going "home" anyway.

ls650 · Joined: 10 May 2003 Posts: 3484 Location: British Columbia

I think it depends where you worked. When I went home after spending a year teaching in Indonesia, I had a nice big work visa pasted in my passport.

I wonder if there is any reporting to the tax authorities of this kind of info when coming back through customs. Probably not....

moonraven · Joined: 24 Mar 2004 Posts: 3094

The IRS has nothing to do with the Immigration and Naturalization office.

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

moonraven,

Failure to file your US taxes is not a good idea. You can't just assume that most people will never return to the US. For those that do, the IRS will catch up to your missing tax records on the very next filing after your return.

Oh, sure, you can go ahead and lie that you didn't make a penny while you were out of the country, but what good does that serve? As mentioned already, you are exempt from filing on income earned overseas up to about $80,000, and no teacher overseas that I know makes nearly that amount.

Remember, too, that some people will have other reasons to file. They may have income from within the US even when they live overseas. Interest income, stocks and bonds, whatever.

I say, file no matter where you are. It's just soooooo easy to do. If you want to lie about your overseas income, that's up to you, but you don't have to.