EZBW

How does it really work? ....could someone please explain. Any local taxes? Will you have to file anything in the US? What about when you come back?

Thanks

170Homie

From what I understand it's totally tax free! You however are responsible for taxes. A couple buddies of mine just opened a offshore account to stash their loot

Thedude

Be careful, you have to live out of the country for a year before the tax free thing kicks in and you do have to file US Taxes or they can get you for tax aviodance. I talked to my tax lawyer a few weeks ago about the very same thing.

74carg

according to a friend, currently in this situation, the first 86/87 grand you make is 'tax free' anything above is taxable.

usmc-sgt

Not sure if Mil is different but when I was over for more than half the year and came back and did my taxes my W2 only reflected the earnings that I made while in the states and not what I made overseas.

skyknight

check out Frequently Asked Questions - 13.7 U.S. Citizens Overseas and follow the various links

i would consult a cpa or tax lawyer

EZBW

Thank You,

Skyone

A little late to the discussion but there are two tests about the taxes. One, if you are out of country for around 330 days a year (check exact day number) you get the 87 grand or so tax free. The other is if you are a legal resident of another country, once you have been gone for a whole tax year, Jan-Dec, you get the 87 grand deduction. Just a start.

mike734

Just remember you must file to get the exemption. BTW the US is one of (if not the only) country that taxes their citizens on world wide income. If you decide to retire to another country you are still required to file and pay taxes on your income.

Cheyenne Driver

I recently got some info on foreign work. Not sure if it is the same for everyone, probably depends on who you work for. There will be taxes in the country where you work. Either you will have to pay or your employer will pay for you. This is something that should be determined before you start work. There are a number of days that you must spend/work in the foreign country, somewhere around 278 days (Africa). When you file US taxes there is a form (16 ??) your accountant will use to determine what you owe on the foreign money. I believe most jobs require a contract and your salary, taxes, bank direct deposit, days off, lodging, transportation, airline flight back to US (when you go to the foreign country you should have a round trip ticket open for your return flight), etc. should be
explained and clearly understood in contract. Hope this helps. You should speak with pilots that do foreign contract work for more details. I finally found a pilot that provided great info.

Good Luck.