Job Discussion Forums

naturegirl321 · Joined: 04 May 2003 Posts: 9041 Location: home sweet home

I'm thinking about working in Europe or Central America. I'm American, so getting a work visa might be difficult, especially in Europe.
I have a question about taxes. It’s probably a stupid question, but if you work illegally, should you still file US taxes?
I would think that the US government could care less if you worked illegally overseas and is more concerned about whether or not you file income tax.
Is this correct thinking on my part? I don't want to break anymore laws than necessary.
Thanks!

johnslat · Posted: Sat May 31, 2003 4:24 am Post subject: A taxing question

Dear naturegirl321,
I'm not sure either - and how the heck would you find out? I don't think the IRS web site would have " paying taxes while working illegally " on its list of FAQs. But I'd say - file. Always file. Better safe than sorry, and I doubt the IRS cares where the money comes from ( Al Capone found that out the hard way ).
Regards,
John

xnihil · Joined: 06 May 2003 Posts: 92 Location: Egypt

http://www.ksrevenue.org/faqs-abcdrugtax.htm

Check out Kansas taxing drug pushers.

As they say, only two things are inevitable, death and taxes, and we're working on death.

bnix · Joined: 16 Jan 2003 Posts: 645

The IRS could care less if you work illegally overseas(that is a civil matter).Of course,if you committed a murder or something overseas(felony)...it would be a completely different story.

Yes,you have to report income,whether it is legal or illegal...whether it is earned in the US or elsewhere.However,there are provisions whereby you can be exempt from paying taxes( they failed to push through something nullifying this recently)

But,even if you do not have sufficient income to report($7,700 annual for a single person under 65 working abroad)...it is a good idea to file anyway.Just in case.Then if they ever run an audit on you in the future and ask you what you were doing in 2003,you can honestly tell them,and pull out your copy of the return for 2003.Note:Of course,the only people meeting the $7700 figure are people working in places like eastern Europe or some places in Latin America.
Hint:If you have someone do your taxes,get a good accountant.Do not leave it to someone like H and R Block.They do not have the expertise to do overseas income....and they hire a lot of temps...especially around tax time.

Johnslat is right about "Big Al" of course.Thought he could beat the IRS..

MindTraveller · Joined: 13 Mar 2003 Posts: 89 Location: Oman

Re taxes: you never have to tell the WHOLE truth. And if you work illegally, and there's no paperwork, you can say anything on your 2555 form. BUT do file. If you make over $80,000, you might want to be careful of what you report.... but if you're like most of us in teaching, you won't be making over $80,000 - especially in Europe.

Working in Europe is more romantic than practical. I worked legally in France with my Irish passport. Talk about taxes! Paperwork! Etc. It's much better to study in Europe - as I did with intensive French classes, 40 hours a week for a month - than to work there.

I know, I know.... doesn't sound nice, but I wish I used my $20,000 exploring my dream of living in France on something much more useful. I just wasted my money on a dream. It would have been better to still have the dream.... and the $20,000.