Job Discussion Forums

rossttuedu · Joined: 03 Feb 2006 Posts: 66 Location: Tianjin

Does anyone know about U.S. residents paying taxes while working overseas? In particular paying U.S. taxes while working in China.

Stephen Jones · Joined: 21 Feb 2003 Posts: 4124

Unless you're earning $85,000 plus, forget it.

You must file though.

tedkarma · Posted: Thu Oct 05, 2006 2:42 am Post subject:

You must file your taxes to get the exemption. So don't just blow off filing.

And, sometimes, in your first year you will need to file an extension to delay your filing until you meet the requirements for working enough days outside the country to get the exemption.

rossttuedu · Joined: 03 Feb 2006 Posts: 66 Location: Tianjin

Ah I did not realize this. Thanks for the info.

Sweetsee · Joined: 11 Jun 2004 Posts: 2302 Location: ) is everything

What If you have blown it off?

gaijinalways · Joined: 29 Nov 2005 Posts: 2279

Often it doesn't matter, but you should quickly backfile (I did this twice, filing 3 years and 2 years at a go) as if you ever plan to return stateside, the IRS will have lots of questions on how you supported yourself overseas.

tedkarma · Posted: Tue Oct 10, 2006 8:35 am Post subject:

Just find a decent CPA and get it done - it really isn't so expensive and saves a lot of trouble in the long run.

Even people who plan to never return should file. A friend of mine who has been overseas for about 23 years - and who STILL never intends to return - ended up with his daughter going to university in the States - and she needs/wants some financial aid. Guess what they want to see first? Yep, daddy's income tax filings. . . Guess who is doing about 20 years of back filing . . .

gaijinalways · Joined: 29 Nov 2005 Posts: 2279

Using the CPA is not a good option. One year of filing here in Japan is 30,000 yen plus. I did it myself, far lower hourly rate for the billing (treated myself to 3 beers after Twisted Evil

).

tedkarma · Posted: Wed Oct 11, 2006 3:31 am Post subject:

gaijinalways · Joined: 29 Nov 2005 Posts: 2279

I hear you Ted Karma. At the moment, I have a mutual fund and no property, so I was able to do it myself, though it was still a pain (doing paperwork is not one of my great loves Wink

). Didn't think of using a CPA back home, probably could use my father's accountant if I wanted to. I was in a rush the one year, though sending the docuements stateside is a bit of a chore, did you bring them yourself or send them?

tedkarma · Posted: Thu Oct 12, 2006 7:58 am Post subject:

I always send COPIES and keep the originals (though I just keep copies of things like 1099 forms, etc.) and mail it all via EMS. Haven't lost anything yet in 17 years overseas.

Come on - get in that RE market! In fact, things are very soft right now, the best time to get in.

Frankly, I was never really able to figure how to report the mutual funds stuff - those are really compicated forms! Real estate is easy compared to mutual funds.

fancynan · Posted: Thu Oct 12, 2006 2:31 pm Post subject:

Have any of you filed online, using an online tax service like taxact or turbotax? I would think that it is as easy to do when you are out of the country as when you are in the US. Since I plan to be heading out next year, and will be renting out my primary residence (primary? ONLY!), this topic is one I have been pondering.

Sgt Killjoy · Joined: 26 Jun 2004 Posts: 438

H&R Block has a free e-file where you fill everything out online and then they submit everything for you.

Important Note: It is only for the current tax returns, you can't use it to backfile a tax return. Never worry, forms are easy to find at the IRS website, www.irs.gov and they even have instructions.

daodejing · Joined: 08 Sep 2006 Posts: 39

The US really needs to change that law. Nearly every country that has an income tax charges taxes on income earned within its borders, and not when their citizens are abroad. So Americans have to pay twice. It's absurd.

tedkarma · Posted: Mon Oct 23, 2006 12:29 pm Post subject: