4 ms·

Aren't you still subject to paying U.S. income tax on your earnings? https://www.irs.gov/individuals/international-taxpayers/taxpayers-living-abroad https://www

Aren't you still subject to paying U.S. income tax on your earnings? https://www.irs.gov/individuals/international-taxpayers/taxpayers-living-abroad https://www.irs.gov/individuals/international-taxpayers/taxp...

swebs 6y ago
>If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($103,900 for 2018, $105,900 for 2019, and $107,600 for 2020). In addition, you can exclude or deduct certain foreign housing amounts. https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore...
- texasbigdata 6y ago
  To be clear you pay the delta. So if you make $X00 and in the Bahamas your income tax is $7, but in the USA your tax would have been $100, you remit $93 back to the US government. Even if you didn’t step foot in the US that year and all the income was Bahamas. Roughly. And if you don’t like it, you make a one time payment of (I think) a third of your net worth. Which is not ideal if the only thing you own is a tangible thing like your childhood home, because now you need to sell it. Being an American comes with a ton of benefits, and one of the costs is how mind numbingly expensive it is to leave. Note, the conversation of whether the US should have territorial taxation roars it’s head up every few years. all of the above might change
deleted 6y ago
[deleted]
Schiendelman 6y ago
Yes, but we have reciprocal tax agreements with many countries. In Germany he’s already paying n dollars in taxes, and that n becomes a tax credit in the US.
- intellirogue 6y ago
  This doesn't apply to all forms of income though. You can get double-taxed on some incomes.
  - Schiendelman 6y ago
    That’s true, but it’s fairly easy to do research beforehand to avoid this. The people generally impacted by this can afford advice from a tax attorney.
    - colinb 6y ago
      is there some cunning (but permitted) trick to avoid paying tax on ESPP gain, and sale of RSUs?
      - Schiendelman 6y ago
        I'm not talking about avoiding paying tax entirely - just paying only the rate of either the US or the other country, not both.

swebs 6y ago

>If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($103,900 for 2018, $105,900 for 2019, and $107,600 for 2020). In addition, you can exclude or deduct certain foreign housing amounts. https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore...

texasbigdata 6y ago
To be clear you pay the delta. So if you make $X00 and in the Bahamas your income tax is $7, but in the USA your tax would have been $100, you remit $93 back to the US government. Even if you didn’t step foot in the US that year and all the income was Bahamas. Roughly. And if you don’t like it, you make a one time payment of (I think) a third of your net worth. Which is not ideal if the only thing you own is a tangible thing like your childhood home, because now you need to sell it. Being an American comes with a ton of benefits, and one of the costs is how mind numbingly expensive it is to leave. Note, the conversation of whether the US should have territorial taxation roars it’s head up every few years. all of the above might change

deleted 6y ago

[deleted]

Schiendelman 6y ago

Yes, but we have reciprocal tax agreements with many countries. In Germany he’s already paying n dollars in taxes, and that n becomes a tax credit in the US.

intellirogue 6y ago
This doesn't apply to all forms of income though. You can get double-taxed on some incomes.
- Schiendelman 6y ago
  That’s true, but it’s fairly easy to do research beforehand to avoid this. The people generally impacted by this can afford advice from a tax attorney.
  - colinb 6y ago
    is there some cunning (but permitted) trick to avoid paying tax on ESPP gain, and sale of RSUs?
    - Schiendelman 6y ago
      I'm not talking about avoiding paying tax entirely - just paying only the rate of either the US or the other country, not both.