Residency and Taxes

[mela77 0]

I know this may be a little off-topic but since I am now a US citizen I thought I could ask my question here.

Is there a number of days spent abroad in a tax year after which you are not considered residing in the US? I'm starting my 6th month abroad (i've been travelling in different countries but spent most of the time back in my native country). I have bank accounts in both country and a credit card in the US. I'm not sure if I'll stay longer here or move back to the US but if I decide to stay, do I have to officially declare it somewhere? Or is it ok to be somewhat "floating" and not change anything regarding the US until I figure out what I am doing?

Thanks!

[Bobby+Umit 161]

Regardless if your living in the US or abroad, you still are required to pay US taxes (even on foreign income).

There are some tax experts on the board that could give you a better answer, but this is my understanding. (you can go to the local US embassy to get tax forms, etc.)

Now - with that said, as an USC - you don't have to declare anything (that your out of the country).

[Wubzywub 0]

I know this may be a little off-topic but since I am now a US citizen I thought I could ask my question here.

Is there a number of days spent abroad in a tax year after which you are not considered residing in the US? I'm starting my 6th month abroad (i've been travelling in different countries but spent most of the time back in my native country). I have bank accounts in both country and a credit card in the US. I'm not sure if I'll stay longer here or move back to the US but if I decide to stay, do I have to officially declare it somewhere? Or is it ok to be somewhat "floating" and not change anything regarding the US until I figure out what I am doing?

Thanks!

As a USC you generally pay income taxes on All income earned. Now who you pay them to is the question. What country is your native country? Are you trying to be a tax evader? Consult a tax lawyer and the IRS for specific answers to your questions.

[Stella08 0]

As a Permanent Resident or U.S. citizen you are required by law to file taxes in the U.S. every year. No matter where you live. But some countries (e.g. Germany) have a treaty with the U.S. and that way the taxes you pay abroad are considered on your U.S. tax return and you don't have to pay taxes on your income twice. Check out the website of the U.S. Embassy or consulate in your country, usually you find a lot of information there.

Edited June 7, 2009 by Stella08

[mela77 0]

I know this may be a little off-topic but since I am now a US citizen I thought I could ask my question here.

Is there a number of days spent abroad in a tax year after which you are not considered residing in the US? I'm starting my 6th month abroad (i've been travelling in different countries but spent most of the time back in my native country). I have bank accounts in both country and a credit card in the US. I'm not sure if I'll stay longer here or move back to the US but if I decide to stay, do I have to officially declare it somewhere? Or is it ok to be somewhat "floating" and not change anything regarding the US until I figure out what I am doing?

Thanks!

As a USC you generally pay income taxes on All income earned. Now who you pay them to is the question. What country is your native country? Are you trying to be a tax evader? Consult a tax lawyer and the IRS for specific answers to your questions.

I am absolutely not trying to be a tax evader, otherwise I wouldn't be posting questions on this forum! I haven't worked since I left the US, so I am not concerned about money and I already know that I will have to file taxes to the US no matter where I live, every year. This is not an issue. I was just more wondering about whether the US cared or not about knowing where my residence is. But it seems like it doesn't.

[payxibka 10,047]

you are still a citizen....

[lucyrich 20]

The US tax laws make a distinction between resident aliens and nonresident aliens. But as far as I know, they don't make a distinction between resident and non-resident citizens. If you're a citizen, you're a citizen for tax purposes, and that's what matters.

[Wubzywub 0]

I know this may be a little off-topic but since I am now a US citizen I thought I could ask my question here.

Is there a number of days spent abroad in a tax year after which you are not considered residing in the US? I'm starting my 6th month abroad (i've been travelling in different countries but spent most of the time back in my native country). I have bank accounts in both country and a credit card in the US. I'm not sure if I'll stay longer here or move back to the US but if I decide to stay, do I have to officially declare it somewhere? Or is it ok to be somewhat "floating" and not change anything regarding the US until I figure out what I am doing?

Thanks!

As a USC you generally pay income taxes on All income earned. Now who you pay them to is the question. What country is your native country? Are you trying to be a tax evader? Consult a tax lawyer and the IRS for specific answers to your questions.

I am absolutely not trying to be a tax evader, otherwise I wouldn't be posting questions on this forum! I haven't worked since I left the US, so I am not concerned about money and I already know that I will have to file taxes to the US no matter where I live, every year. This is not an issue. I was just more wondering about whether the US cared or not about knowing where my residence is. But it seems like it doesn't.

The are hundreds of thousands of USC that under report their incomes by not including their secret off shore accounts or incomes earned in foreign countries.. Just pointing that fact out. But it's a catch me if you can mentality. I'm sure whatever your native country is, they meaning the IRS won't be able to trace much of that income.. Not worth their time. Small potatoes. What is your native country?

[motu 6]

Good News - if you live and work abroad - generally you can exclude approximately $87,000 a year - so, unless you are in a high paying job - you will not have a tax liability - But you must still file taxes. Generally all income (from everywhere) is taxed by the US Govt. but there are exclusions that apply (as mentioned above among others) and almost any time you pay taxes to another country - you can take a credit for taxes paid (so, technically - you never pay double taxes on the same income). When you fall under this category - try and carefully navigate through Turbo tax or any other tax program either on CD or online - and they will walk you through it. Many of us will eventually move out of USA, as many others have already done and do pay taxes or at least file taxes, especially since our pension or social security is US based. In addition you may also have to file documents informing the US Govt of your foreign bank accounts - (generally if you have more than $10,000 in it). Basically, once you move out - try and get more info through The IRS website; the Treasury website or from other expatriates residing where you do - Many countries like Colombia, Costa Rica, Panama have expatriate websites helping each other out (like Visa Journey)- it's quite common. Several thousand US citizens live in Mexico, Panama, Costa Rica among all the other countries of the world. My sister lives in India (she is a US citizen); my friend just moved to Colombia (Also a US resident) among others that I personally know of. Another good thing - your US money generally goes twice as far as in USA! So, suddenly, you are pretty rich! Good Luck