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I think you pay US taxes only on 108K, plus taxes on whatever tax jurisdiction you're in. Which is kind of a bummer. For the first 108K, AFAIK, you just pay ta
by jimmywanger 10y ago
I think you pay US taxes only on 108K, plus taxes on whatever tax jurisdiction you're in. Which is kind of a bummer.
For the first 108K, AFAIK, you just pay taxes to wherever you earned the money. If you made 100k a year selling widgets from Columbia, you're only subject to Columbian income tax.
I don't think there's any such thing as a free lunch - you'll have to pay for one set of taxes no matter what. The US double taxes over 108k.
- bogomipz 10y agoOuch that's rotten. I thought there was a way to deduct from that 108K whatever you were paying in taxes wherever you were domiciled.
- maxerickson 10y agoLocal taxes on earnings above the $108000 can be taken as a credit: https://www.irs.gov/individuals/international-taxpayers/choosing-the-foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/choo... However, you can choose to take the foreign tax credit on any amount of foreign income which has not been excluded under the foreign earned income exclusion or the foreign housing exclusion. So it isn't a double tax, the US credits the foreign tax payments.
- bogomipz 10y agoThanks for the link. I looked it over but I am a bit confused on 108K figure now. Is the 108K additional credit you can take whether a local exclusion has been taken or not? Is that correct?