Job Discussion Forums

AGoodStory · Joined: 26 Feb 2010 Posts: 738

naturegirl321

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

As with everything in the govt, things aren't that cut in dry. The $91,500 is the limit for one employer, if you work elsewhere, you're self employed or a consultant, and have to pay 15.3%, but I think it's gone down to 13.3% this year.

and it doesn't include stuff like
rent
self employment
interest
stocks
bonds
etc

Also to file the 2555 or 2555 ez, you have to already be paying taxes. (With the exception of having the 8802).

So if I teach private lessons and make 50K a year and DON?T file the 8802 and DON?T pay taxes in ABC country, then I still have to file Sch C and Sch SE and pay the US, even though that's under the 91K limit.

Now if I teach at a school and make 50K and another 40K doing privates, then, legally, I have to pay either the IRS taxes on the 40K or taxes to ABC country and can get out of double taxation through the 1116. (even though it's only 90K, which is below the limit)

Make sense? Probably not. They change the laws all the time. They don't even know what's going on. If you're really worried and have difficulties, I'd recommend an accountant. There are some out there who don't charge an arm and a leg., I'll be using one this year because of all the tax issues I have.

Irish Lad · Joined: 06 Sep 2011 Posts: 31

Irish Lad · Joined: 06 Sep 2011 Posts: 31

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

Irish Lad, where you have been? You seem to show at odd times. Are you in LA yet or still in Ireland? Do you file US taxes?

If Landon had done his research, he-d know about the IRS stuff. , for tax stuff, he should go to www.irs.gov

Mr. Kalgukshi · Posted: Thu Oct 20, 2011 2:58 am Post subject:

Irish Lad obviously had this board confused with others he may visit.

This board, Dave's, doesn't appreciate, want, need or permit personally insulting or demeaning comments.

The result is he is no longer with us.

Landon · Joined: 26 Sep 2011 Posts: 90

Thank you to all the experts for the tax advice. I feel like I should be writing a check right now. Very Happy

A lot has been cleared up through PMs by several members and I can accept SOME of it. I still believe that the way the tax system is set up in some countries is giving the false sense of an inflated NET salary, where they are still getting plenty from you just not all in the form of INCOME tax on a government form.

For the time being, I have concluded that maybe these things should just be looked at and grouped in terms of cost of living. And cost of living, including all forms of taxation, versus salary is where you can see what you really stand to gain in that location versus another. NET salary in one place versus NET salary somewhere else cannot be compared effectively.

HLJHLJ · Joined: 06 Oct 2009 Posts: 1218 Location: Ecuador

You are quite right Landon. If you can face wading back to the murky depths of this thread I suggested there are 2 pieces of information you need, net income and how that equates locally to buying/saving power.

Knowing that you earn $3000 a month doesn't help much if you don't know whether you are taking home $2000 or $2999. Equally, knowing you are taking home $2000 doesn't help much if you don't know whether your living costs will be $1,000 or $2,000 a month.

But if you have a rough idea of both you can start to compare salaries across countries. Once you have settled on a country and a job there is time enough to work out the finer details of exactly what has to be paid to who.