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rupert shellgame
Joined: 11 Apr 2007
Posts: 109
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 Posted: Mon Jul 06, 2009 5:14 am Post subject: U.S. Tax Question |
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Is it true that if I go back to the U.S. for a visit for 5 weeks, leaving behind an apartment, car, scooter, and life in a foreign country, all in my name, that I will have to pay taxes to the US?
It seems that you have to be in the country for 330 days out of a year (or is it a tax year) in order to claim the Foreign Income Exclusion... I'm just not sure.
Any thoughts? |
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jgmodlin
Joined: 01 Mar 2006
Posts: 120
Location: USA
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| Posted: Mon Jul 06, 2009 5:13 pm Post subject: |
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| You would be responsible for taxes but only for that time under 330 days. It wouldn't really amount to much since it would be calculated as a percentage of the time under 330 days. You can access the IRS website to confirm, but as I recall if you were out of the USA for 315 days it would be 15/365 and then pay tax on only that percentage of your salary. I don't think that would amount to much... |
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SanChong
Joined: 22 Nov 2005
Posts: 335
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| Posted: Tue Jul 14, 2009 7:30 am Post subject: |
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Unfortunately, that's not accurate. It's a straight presence test. If you're out of the US for 330 days (that's 330 days out of ANY 365 day period, not per calendar year) then you don't have to pay US taxes up to $85,000 USD per year (they may have added a couple thousand to that recently).
However, there is another test: Is Taiwan your permanent home? If so, and you don't have any plans to head back to the US to live, then you don't have to meet the 330 day presence test.... and you can go back and enjoy your 5 weeks without worrying about having to pay taxes in the US.
Hope that's helpful. |
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MrMrLuckyKhan
Joined: 08 Feb 2008
Posts: 282
Location: Kingdom of Cambodia
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| Posted: Wed Dec 02, 2009 6:28 am Post subject: |
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| SanChong wrote: |
It's a straight presence test. If you're out of the US for 330 days (that's 330 days out of ANY 365 day period, not per calendar year) then you don't have to pay US taxes up to $85,000 USD per year (they may have added a couple thousand to that recently).
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Yes, but it's still only pro-rated. In other words, it appears that if you are overseas for 330 days and it overlaps into 2 different years, you can only prorate the tax exemption amount. But, unless you are making around $85000 a year I would assume the prorated deduction amount would be more than enough!!
Here's a direct link from our beloved IRS so you can interpret it as you will>>
http://www.irs.gov/publications/p54/ch04.html#en_US_publink100047498 |
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