5 ms·

Does a US citizen - who lives overseas and refuses to pay their federal income tax - count as a tax protestor? I didn't see that reason in the lists.

toomuchtodo 6y ago
You typically have to exceed the foreign earned income exclusion (adjusted annually for inflation: $103,900 for 2018, $105,900 for 2019, and $107,600 for 2020) [1] (for taxes you pay to your country of residency) before you owe US federal income tax while living overseas. If you have seriously delinquent tax debt [2], the IRS can request the State Department prevent the renewal and/or revoke your passport (which, in many cases, will terminate your visa or prevent renewal in the foreign country you reside, as your passport is no longer in good standing; you will be granted a limited passport for return to the US by the State Department if this occurs [3]). [1] https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore... [2] https://www.irs.gov/businesses/small-businesses-self-employed/revocation-or-denial-of-passport-in-case-of-certain-unpaid-taxes https://www.irs.gov/businesses/small-businesses-self-employe... [3] https://travel.state.gov/content/travel/en/News/passports/passports-and-seriously-delinquent-tax-debt.html https://travel.state.gov/content/travel/en/News/passports/pa...
- pmiller2 6y ago
  The $105k-ish number is just the amount of foreign income that is exempted (hence, upon which one would owe no taxes). Technically, anyone subject to US tax law is supposed to file a return every year, even if no tax is owed and no refund due. I could easily see IRS going after someone living abroad who had committed no real crime other than not filing a return.
  - yellow_postit 6y ago
    And can’t forget about filing the FBAR to the Treasury Department.
    - pmiller2 6y ago
      That, too, of course. There's a reason every time I've seen an American abroad ask a question about filing taxes that the answer is literally always "You need to find yourself a specialist accountant to help you with this."
  - fl0wenol 6y ago
    One reason for that global reporting req is to account for capital gains in domestic trading accounts, or other transfers of property. This is not unique to the US, but other countries don't necessarily piggy-back this in your standard income tax filing. There are provisions to prevent double-taxing beyond the foreign income threshold because of treaties between the US and other countries. I'd speak to a professional at least the first time you file internationally.
    - worik 6y ago
      What is unique to the USA is: charging citizens tax on money they earn when they live overseas and forcing overseas banks to hand over details, in some cases of non USA citizens, to USA IRS
      - kingosticks 6y ago
        To be a bit more specific, it's charging citizens tax on money they earn from overseas when they live overseas i.e. nothing to do with the US at all. Your comment could be interpreted to mean just taxing income from US investments while living abroad, for example (which would be more reasonable, but still over-reaching). Taxing worldwide income is also done by a few other countries but only the IRS has the bizarre extra reach into overseas banking data (that I know of, at least).
- kingosticks 6y ago
  How you use the exclusion (and the credit, if necessary) isn't the point. The point is protesting the idea of of being subject to US tax when you do not have any US income.
- worik 6y ago
  Sorry mate. That may be strictly true. But you must file tax returns. I met a women here in Aotearoa who had not stepped foot in the USA for thirty years and never thought about the taxes. Facing extradition or loosing every single thing she owns. Or both.

toomuchtodo 6y ago

You typically have to exceed the foreign earned income exclusion (adjusted annually for inflation: $103,900 for 2018, $105,900 for 2019, and $107,600 for 2020) [1] (for taxes you pay to your country of residency) before you owe US federal income tax while living overseas. If you have seriously delinquent tax debt [2], the IRS can request the State Department prevent the renewal and/or revoke your passport (which, in many cases, will terminate your visa or prevent renewal in the foreign country you reside, as your passport is no longer in good standing; you will be granted a limited passport for return to the US by the State Department if this occurs [3]). [1] https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore... [2] https://www.irs.gov/businesses/small-businesses-self-employed/revocation-or-denial-of-passport-in-case-of-certain-unpaid-taxes https://www.irs.gov/businesses/small-businesses-self-employe... [3] https://travel.state.gov/content/travel/en/News/passports/passports-and-seriously-delinquent-tax-debt.html https://travel.state.gov/content/travel/en/News/passports/pa...

pmiller2 6y ago
The $105k-ish number is just the amount of foreign income that is exempted (hence, upon which one would owe no taxes). Technically, anyone subject to US tax law is supposed to file a return every year, even if no tax is owed and no refund due. I could easily see IRS going after someone living abroad who had committed no real crime other than not filing a return.
- yellow_postit 6y ago
  And can’t forget about filing the FBAR to the Treasury Department.
  - pmiller2 6y ago
    That, too, of course. There's a reason every time I've seen an American abroad ask a question about filing taxes that the answer is literally always "You need to find yourself a specialist accountant to help you with this."
- fl0wenol 6y ago
  One reason for that global reporting req is to account for capital gains in domestic trading accounts, or other transfers of property. This is not unique to the US, but other countries don't necessarily piggy-back this in your standard income tax filing. There are provisions to prevent double-taxing beyond the foreign income threshold because of treaties between the US and other countries. I'd speak to a professional at least the first time you file internationally.
  - worik 6y ago
    What is unique to the USA is: charging citizens tax on money they earn when they live overseas and forcing overseas banks to hand over details, in some cases of non USA citizens, to USA IRS
    - kingosticks 6y ago
      To be a bit more specific, it's charging citizens tax on money they earn from overseas when they live overseas i.e. nothing to do with the US at all. Your comment could be interpreted to mean just taxing income from US investments while living abroad, for example (which would be more reasonable, but still over-reaching). Taxing worldwide income is also done by a few other countries but only the IRS has the bizarre extra reach into overseas banking data (that I know of, at least).
kingosticks 6y ago
How you use the exclusion (and the credit, if necessary) isn't the point. The point is protesting the idea of of being subject to US tax when you do not have any US income.
worik 6y ago
Sorry mate. That may be strictly true. But you must file tax returns. I met a women here in Aotearoa who had not stepped foot in the USA for thirty years and never thought about the taxes. Facing extradition or loosing every single thing she owns. Or both.