Job Discussion Forums

piscean21 · Joined: 15 Nov 2004 Posts: 20 Location: Houston, TX

Do we have to file taxes back in the US if we are working and making money in another country? I'm assuming that if many teachers work illegally in a country under a tourist visa, that money is not taxed by the country?

Guy Courchesne · Joined: 10 Mar 2003 Posts: 9650 Location: Mexico City

You are suppooooooooooosed to claim all world income on your taxes. However, I think it comes down to your honesty level. It seems pretty easy to avoid claiming what's made abroad. I don't advocate tax evasion, but it seems an easy choice.

If the country you work in has a tax treaty with the US, and your income in that country is taxed, then you should be able to avoid double taxation, depending on a few factors like your declared country of residency, time abroad, etc. You need to check with the IRS on that.

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

If you earn money overseas, you are required to FILE for US taxes on it, but there is an exemption of about $80,000 on PAYING such taxes. If you are a teacher making that much money, you are extraordinarily lucky.

Look for the IRS web site and look up the 2555 forms.

If you are making any money privately (whether illegal or not), nobody is going to know what you make, so it is up to you to decide whether to file. It MIGHT be to your advantage to file for it because of certain circumstances. Example, you are going to get married to a foreigner and need to prove some stability or a certain level of income over the previous years outside of the US.