remote work Working remotely for Foreign company while in the US

[Dreamthinklive_ 0]

Hi everyone, I had a quick question.
 

I’ll let try to keep it short to save time for everyone because I know you some might be busier than most and I appreciate your time.

 

I work remotely for a company in my home country and we don’t pay taxes. So I was curious, how do I go about calculating how much I need to save for my taxes for next year?

 

Also, I’m envisioning that by Dec or Jan of this year I’ll have another job based in here the US but for now, it’s a foreign company with no ties to the US in regards to having a registered location here.

 

Would a CPA be the best person to assist me?

 

I couldn’t find any specific information on my circumstance.

 

Thank you in advance for your advice!

 

Edited March 24, 2022 by Dreamthinklive_

[Mike E 11,739]

Assuming you are authorized to work in the USA, you will be filing taxes as a self employed worker.  
 

A good rule of thumb is Reserve 30 percent of your revenue for paying federal income tax, federal self employment tax, and state income tax.  
 

Knowing your expected income and state of residence one can get a better estimate.  

[Dreamthinklive_ 0]

3 minutes ago, Mike E said:

Assuming you are authorized to work in the USA, you will be filing taxes as a self employed worker.  
 

A good rule of thumb is Reserve 30 percent of your revenue for paying federal income tax, federal self employment tax, and state income tax.  
 

Knowing your expected income and state of residence one can get a better estimate.  

Thanks for the reply! As for Authorization, I am.

 

My spouse is a citizen and I’m located in Florida.

[Mike E 11,739]

7 minutes ago, Dreamthinklive_ said:

 As for Authorization, I am.

 

My spouse is a citizen

Your spouse’s citizenship doesn’t authorize you to work.  

7 minutes ago, Dreamthinklive_ said:

and I’m located in Florida.

30 percent then.  Roughly 15 percent for SE tax, and 15 percent for federal income taxes. 

[Dreamthinklive_ 0]

28 minutes ago, Mike E said:

Your spouse’s citizenship doesn’t authorize you to work.  

30 percent then.  Roughly 15 percent for SE tax, and 15 percent for federal income taxes. 

Well to be clear, I have my IR1 visa.

 

but thanks for the info again!

[Dreamthinklive_ 0]

Also, to be clear as well, I’m not working freelance, it’s a full time job with benefits etc. 
 

Would that still count as self employed?

[Mike E 11,739]

10 minutes ago, Dreamthinklive_ said:

Also, to be clear as well, I’m not working freelance, it’s a full time job with benefits etc. 
 

Would that still count as self employed?

Is your employer going to set up a payroll arrangement in  Florida so that you get paychecks drawn from a USA bank and pay stubs showing deductions for federal income tax, social security tax, Medicare tax? Is your employer going to pay the employer side social security and Medicare (an additional 7.65 percent that W-2 employees never see)? 
 

Will your employer also pay Florida state unemployment insurance premiums?

 

If the answers to these questions aren’t all yes, then I think you are self employed for tax purposes barring a tax treaty between the USA and your country.  But you said your country doesn’t levy income taxes so I doubt there is a treaty.  
 

You are earning income as an LPR.  You are required to pay USA taxes on it.  

Edited March 24, 2022 by Mike E

[Dreamthinklive_ 0]

1 minute ago, Mike E said:

Is your employer going to set up a payroll arrangement in  Florida so that you get paychecks drawn from a USA bank and pay stubs showing deductions for federal income tax, social security tax, Medicare tax? Is your employer going to pay the employer side social security and Medicare (an additional 7.65 percent that W-2 employees never see)? 
 

Will your employer also pay Florida state unemployment insurance premiums?

 

If the answers to these questions aren’t all yes, then I think you are self employed for tax purposes barring a tax treaty between the USA and your country.  But you said your country doesn’t levy income taxes so I doubt there is a treaty.  
 

You are earning income as an LPR.  You are required to pay USA taxes on it.  

For sure, they aren’t planning to pay those things which is why I’m just trying to figure out how to go about it and how much I roughly have to save based on my salary.

 

So thanks for the info.

[SteveInBostonI130 3,434]

Also, for those who are self employed, taxes have to be paid quarterly.  You cannot wait until the end of the year or until April 15 of the following year to pay.

 

Well, in practice you can wait but you will be charged penalties.

[Dreamthinklive_ 0]

2 minutes ago, SteveInBostonI130 said:

Also, for those who are self employed, taxes have to be paid quarterly.  You cannot wait until the end of the year or until April 15 of the following year to pay.

 

Well, in practice you can wait but you will be charged penalties.

I think I watched something about that today but I thought they said for people who have a business?

[Redro 4,611]

@Wuozopo is the resident tax expert. 

 

 

[Dreamthinklive_ 0]

4 minutes ago, Kor2USA said:

@Wuozopo is the resident tax expert. 

 

 

Thanks! I'll wait for @Wuozopo to enter the room :)

[Lil bear 4,201]

25 minutes ago, Dreamthinklive_ said:

I think I watched something about that today but I thought they said for people who have a business?

If you don't have a significant portion of your tax paid before April 15 you will incur a sliding scale penalty that is paid on top of the tax. Not just businesses or self employed use the quarterly pre pay tax option.. we have investments that don't have tax taken out as they go, so we pay estimated tax to avoid the penalty 

[Dreamthinklive_ 0]

1 minute ago, Lil bear said:

If you don't have a significant portion of your tax paid before April 15 you will incur a sliding scale penalty that is paid on top of the tax. Not just businesses or self employed use the quarterly pre pay tax option.. we have investments that don't have tax taken out as they go, so we pay estimated tax to avoid the penalty 

I'm very new to all this tax information so im trying to learn as much as i can. I know i will have access to Turbo tax etc but i still love knowing the basics for myself as well. 

 

Thank you to everyone so far for chiming in and giving me the info. I appreacite you.

[Lil bear 4,201]

1 minute ago, Dreamthinklive_ said:

I'm very new to all this tax information so im trying to learn as much as i can. I know i will have access to Turbo tax etc but i still love knowing the basics for myself as well. 

 

Thank you to everyone so far for chiming in and giving me the info. I appreacite you.

The US tax system is complex !! There are IRS guides which are good to access. Ive been using TurboTax for the 6 years we have been here and i find it thorough and steps me through things i would have no idea about otherwise.