Paying US Taxes if you work in Vietnam

[confusedasheck 21]

If you are a US citizen and you work in Vietnam, do you pay US taxes? My understanding is that the first $80K is exempt from US taxes (but you still have to file). Anybody have experience in this area?

[YuAndDan 153]

Unless you are working for a US employer, and are just stationed overseas, you will be exempt from paying US tax on foreign income up to a certain level.

And yes it is always a good idea to file returns to the IRS every year.

MORE: http://www.irs.gov/publications/p54/index.html

[BinhJerome 14]

You do have to file even if you live in a foreign country, if you work for the government or business that is located in the United States then the first 80K rule is correct as is my understanding, however if you are not working for the government or an american country the 80k rule does not apply as is MY understanding, but for certain you are supposed to file each and every year even if you do not make any money. Jerome

[Teacher Mark 53]

The amount you can earn is now $91,500. Remember that Vietnam will tax you up to 35%.

You have to reside in Vietnam at least 330 consecutive days to be considered an expatriate for tax purposes. Go back to the US before that mark and you will be liable for taxes on your foreign earnings for that tax year, regardless of the amount earned. Paid taxes in Vietnam? Tough sh!t. We don't have a double tax treaty with VN. Just ask DaoTx about that. He got the double whammy from Uncle Sam and Uncle Ho.

http://www.usa-inter...ax_position.asp

Edited February 27, 2011 by Mekong Mark

[Teacher Mark 53]

It doesn't matter who you work for, BTW. Be it an American or foreign company, you can earn up to $92,900 (2011 adjustment) without a US tax burden. You are supposed to file, regardless of earnings, and the 330 day rule applies.

http://www.usa-international-offshore-expatriate-tax.com/income_exclusion.asp

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

[ScottThuy 140]

I wonder how they would look at my income if i were there 330+...

[Teacher Mark 53]

I wonder how they would look at my income if i were there 330+...

I'd love to be in your position.

I've averaged 10% and I think you'd probably pay the same.

[logframe 0]

Please remember that you don't pay US federal/state tax, but you do pay social security tax. Furthermore, income is defined more than just cash and includes housing costs and education costs (if you have kids in school there).