I have a good tax comparison from a crew member for the equalization vs. doing it yourself. The problem is that it is in an Exel format. I tried copying and pasting. It doesnt look good. Then I tried just typing it in a post....still doesnt look good. So, here it is.....not looking good!
I think it is important enough to post though. Ya'll can figure it out!
First Officer Income US Tax Rate
140,000.00 Wages 0.30
23,800.00 HK Tax
--------------------
163,800.00
US Tax Calc (paid by Fedex) HK Tax Calc (paid by Fedex)
Income 163,800.00 140,000.00
Less Exclusion -85,000.00 HK Tax 17% = 23,800.00
Less Standard Deduction -10,300.00
Less Personal Exemption -6,600.00
------------------
AGI 61,900.00
US Tax Calc (rate in D2) 18,570.00
Less Foreign Tax Credit -23,800.00
-5,230.00
---------
US Tax Liability 0.00 HK Tax Liability 23,800.00
Price Waterhouse Coopers Calcs (paid by Pilot)
Income 140,000.00
Less Standard Deduction -10,300.00
Less Personal Exemption -6,600.00
AGI 123,100.00
------------
US Tax Calc (rate in D2) 36,930.00
Pilot Pays Fedex Price Waterhouse Coopers 36,930.00
Fedex Pays US Tax + HK Tax 23,800.00
Fedex Profits 13,130.00
Captain Income
230,000.00 Wages
39,100.00 HK Tax
-----------------
269,100.00
US Tax Calc (paid by Fedex) HK Tax Calc (paid by Fedex)
Income 269,100.00 230,000.00
Less Exclusion -85,000.00 HK Tax 17% 39,100.00
Less Standard Deduction -10,300.00
Less Personal Exemption -6,600.00
------------
AGI 167,200.00
US Tax Calc (rate in D2) 50,160.00
Less Foreign Tax Credit -31,000.00 "Think FTC capped at 31,000ish"
------------
19,160.00
US Tax Liability 19,160.00 HK Tax Liability 39,100.00
Price Waterhouse Coopers Calcs (paid by Pilot)
Income 230,000.00
Less Standard Deduction -10,300.00
Less Personal Exemption -6,600.00
AGI 213,100.00
US Tax Calc (rate in D2) 63,930.00
Pilot Pays Fedex Price Waterhouse Coopers 63,930.00
Fedex Pays US Tax + HK Tax 58,260.00
Fedex Profits 5,670.00