FedElta

My limited understanding is that Guam is a US territory with its' residents granted US citizenship, but no voting rights.

If a carrier based pilots there, what would their ex-pat status be regarding US/ Guam income taxes ??

Thanks.......

iaflyer

US Citizen have to pay US income taxes no matter where they live - although if you live outside the US for more than 330 days, some of the income is excluded.

I don't know how the taxes work with Guam - here is an IRS page about it, but as one might expect, it's a bit hard to read:

Individuals Living or Working in U.S. Possessions

If there is a CAL guy/girl around who was based there, they should know the details.

guzzilapd

You pay Guam taxes and they stay local on the Welfare Island aka Puerto Rico of the Pacific. You will not have to pay Federal taxes or your State if your state taxes you
You can vote....you are a US citizen I presume.

330 rule works only if your out of the US and its Territories and dont want to declare residency in a foreign co. Some may want to because some countries Taxes are nill or little, other countries like the P.I taxes would be greater than US on airline pilot income so the 330 rule works there....if you stay out 330 days and that does not have to be consecutive.

hope this helps..

Speed

Per Guzzilapd, you pay the equivalent of Fed income tax with the revenue going to govt of Guam. No "state" tax. Also, there's no sales tax last time I checked.

acl65pilot

Very interesting thread!

FWIW TX has not state taxes either!

C17MooseDriver

No federal taxes for Guam. It's because you can't have taxation without representation. Guam representatives to congress do not have voting rights.

You do pay local taxes though. Still no sales tax either.

Guam residents can't vote for president either.

Semaphore Sam

Interesting. By this principle, DC residents pay no federal taxes? Wow!

hindsight2020

Be advised though.... As it pertains to the case of Puerto Rico, there is this long standing fallacy that PR residents "don't pay taxes" when juxtaposed to stateside citizens. This fallacy stems from extrapolating the fact that territories do not pay federal tax, and somehow committing the leap in logic that "no fed taxes= these people don't pay taxes compared to us hard working americans"

Let's take a look at PR personal income tax brackets.....Any income above 25K is taxed at, ready for it? 33%. Yep, more than effectively the stateside citizen at the same income bracket with his federal AND state witholdings combined. How you like them apples? So do your research before spewing the old misinformation.

As to no sales tax. You guys realize the importation cost and tariffs are inclusive on the price of goods in the islands, right? And yes, there now is a sales tax on TOP of the importation costs, at least in PR. I surmise Guam has the same setup. Life in natural-resource-scarce islands is not cheap....

I venture to say being employed in any of the US territories is about the worst tax-related move you could ever do, by far.

TenYearsGone

Why is GUAM such a target for Airline ops??? What is there to do?

Thanks

MrWalk

Haha. Guam, at least when I was there in the '90s, was like the Hawaii of the '50s. The place is just awesome, with unspoiled beaches, killer SCUBA, jungle everywhere, and Denny's and Burger King.

It was a big player in WWII and there are numerous land-based historical remnants and many terrific shipwrecks to dive. The scenery and culture of the island and its neighbors themselves is unbelievably beautiful and rich.

It is a large vacation destination for that neck of the woods, with many nice resorts. It is a popular destination for many Japanese in particular.

I gotta say, the months I spent there diving, loving, and fighting a war were some of the best in my life.