Job Discussion Forums

[mcloo7]

If you work in a country where you make enough money to save some, do you pay taxes on that money when you bring it into the US when you move back? Or, do you pay taxes in the foreign country where you work? I know some countries don't make you pay taxes, so do you ever pay taxes on that money? Doesn't the US have repatriation laws? And the most important question, do you pay into Social Security at all, or is there any way to? Does a career ESL teacher have a retirement pension in his/her own country?

[nomad soul]

http://forums.eslcafe.com/job/viewtopic.php?t=96417&postdays=0&postorder=asc&start=0
http://forums.eslcafe.com/job/viewtopic.php?t=94828&start=0

Plus, the IRS is your best source for info. Do an Internet search on irs working abroad.

[mcloo7]

thanks

[Sashadroogie]

I weep, truly, at the thought of any government claiming the right to tax labour outside of its own jurisdiction. How do American citizens tolerate this?

[mcloo7]

I'd rather pay into Social Security and Medicare than not have it when I'm older.

[BadBeagleBad]

That's assuming it will still be around.......

[geaaronson]

If I recall correctly, you don`t have to pay US taxes for income abroad unless your gross income is more than $87,500. That figure may have changed somewhat because that amount was the figure 6 years ago.

[Isla Guapa]

[johnslat]

$92,900 for 2011

"If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is now adjusted for inflation ($91,400 for 2009, $91,500 for 2010, $92,900 for 2011, $95,100 for 2012). In addition, you can exclude or deduct certain foreign housing amounts."

http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html

And I doubt too many ELFers are making that or more

Regards,
John

[naturegirl321]

[mcloo7]

Thanks. That's great advice and very well organized. No. 1 and 3 were essentially the same question.

[scot47]

My understanding of US SocSec pensions is that you have to work in the US or for a US company abroad and make contributuions for 40 quarters (ie 10 years) to get the minimum US pension.

System in Uk is different. If you have worked for one year in the UK you can make voluntary contributions to National insurance and get an NI pension that way.

[Glenski]

4. And the most important question, do you pay into Social Security at all, or is there any way to?

[johnslat]

Dear mcloo7,


Scot47's right. Virtually the only way that I'm aware of that SS can be paid into while one is working overseas is if one is working for a USA company over there (e.g. Raytheon, Lockheed, etc. )

"When Social Security and Medicare Taxes Apply Outside Of U.S.

In general, U.S. social security and Medicare taxes continue to apply to wages for services you perform as an employee outside of the United States if one of the following applies:

You are working for an American employer which includes:
The U.S. Government or any of its instrumentalities
An individual who is a resident of the United States
A partnership of which at least two-thirds of the partners are U.S. residents
A trust of which all the trustees are U.S. residents
A corporation organized under the laws of the United States, any U.S. state, or the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands (with respect to the CNMI, refer to Revenue Ruling 80-167).
You perform the services on or in connection with an American vessel or aircraft and either:
You entered into your employment contract within the United States, or
The vessel or aircraft touches at a U.S. port while you are employed on it
You are working in one of the countries with which the United States has entered into a binational social security agreement (also known as Totalization Agreements), and the agreement provides that your foreign employment is subject to U.S. social security and Medicare taxes.
You are working for a foreign affiliate of an American employer under a voluntary agreement entered into between the American employer and the U.S. Treasury Department
Foreign Affiliate

A foreign affiliate of an American employer is any foreign entity in which the American employer has at least a 10% interest, directly or through one or more entities. For a corporation, the 10% interest must be in its voting stock. For any other entity, the 10% interest must be in its profits."

http://www.irs.gov/businesses/small/international/article/0,,id=97160,00.html

Regards,
John

[naturegirl321]