taxes while out of the country

[tomica52 0]

Hi all,

I got my CG about 4 months ago, and now I have a really good business oportunity to go to Germany to implement my research. I would go there for about 6 months (don't think it's a problem with my greencard, and I will be making multiple trips to th US while in Germany). I would also get paid by the German company while there. I look everywhere, and I can't seem to find if I have to pay US taxes on income earned while in Germany, I know that US citizens have to pay taxes if they stay abroad for less than a year, but I am not sure if it is the same for permanenet residents. If anyone has any experience or knowledge of this please let me know.

Thanks.

Alex

[kitkat1 5]

Best to consult a qualified US accountant to be 100% clear.

Found this:

LPRs should be sure to file income tax returns each year that they earn income, whether or not from sources in the United States, so that their tax compliance documents their intention to maintain permanent resident status.

[no one 0]

Not sure about US tax laws, but in Canada, as long as you're a permanent resident (citizen or not), you'll still have to pay your taxes.... which means if you work abroad, you may well be double-taxed unless the foreign company makes a deal with you to pay you a tax-free salary. Just a possibility to consider when working abroad!

[Susanne 0]

hey Tomica,

I'm german and my husband was in Germany for two years. He studies over there and worked a little bit as a student software developer. We thought that he doesnt have to pay taxes but now found out while filing for my aos, that he had to. They say, that you definately have to pay taxes when you are outside of the us. So we got an RFE. That menas they are really serious about that

But its still best to contact somebody official.

Hope ithelps and you can go to Germany. Its a great country. where will you be working?

Susanne

Edited November 30, 2006 by twopens

[Yodrak 7]

Alex,

Remaining a US tax payer is one of the best things that a LPR can do while out of the country to demonstrate that they have not abandoned their LPR status.

US taxpayers must declare all income received from any source anywhere in the world. If foreign-earned income was taxed by another country then a tax treaty between that country and the USA may determine what taxes, if any, may be due to the USA. Also, up to $80,000 (a few years ago, may be more now) or foreign earned income may be excluded from income taxable by the US.

Find a tax accountant who has experience doing tax returns for US expats.

Yodrak

Hi all,

I got my CG about 4 months ago, and now I have a really good business oportunity to go to Germany to implement my research. I would go there for about 6 months (don't think it's a problem with my greencard, and I will be making multiple trips to th US while in Germany). I would also get paid by the German company while there. I look everywhere, and I can't seem to find if I have to pay US taxes on income earned while in Germany, I know that US citizens have to pay taxes if they stay abroad for less than a year, but I am not sure if it is the same for permanenet residents. If anyone has any experience or knowledge of this please let me know.

Thanks.

Alex

[clloyd 0]

I disagree with the above stated effect of tax treaties.

see http://www.irs.gov/businesses/small/intern...d=96434,00.html

he United States has income tax treaties with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U.S. income taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and specific items of income.

OP should refer to IRS Publication 54 http://www.irs.gov/publications/p54/index.html

[meauxna 15]

clloyd,

What's different?

[clloyd 0]

From reading the IRS website, tax treaties cover residents of other countries, and tax them at different rates. If you are a resident of the US, you are taxed just like any other resident of the US. Or so I think from reading.

[William33 110]

clloyd,

The OP was asking about foreign earned income being taxable in the US, as a LPR.

From reading the IRS website, tax treaties cover residents of other countries, and tax them at different rates. If you are a resident of the US, you are taxed just like any other resident of the US. Or so I think from reading.

[clloyd 0]

Please the the post above mine.

clloyd,

The OP was asking about foreign earned income being taxable in the US, as a LPR.

From reading the IRS website, tax treaties cover residents of other countries, and tax them at different rates. If you are a resident of the US, you are taxed just like any other resident of the US. Or so I think from reading.

[Anna C. 4]

Hm seems the US still will tax you. It would be easier if you were a GC holder in Germany, we don't double tax. Didn't have to pay one cent of the money I earned in NYC.

Try to find out if there a special programs in Germany or if the company has a subsidiary in the US and if they can pay you (e.g. like Siemens, Miele, BMW, etc.).

Good luck!

Edited December 4, 2006 by Anna C.

[everandel 0]

You have to report income from all sources, that includes foreign income, and pay taxes according to your situation. You get deduction for the taxes paid to the foreign country though; that eliminates double taxation.