3 ms·

Deduct or expense? The later is almost for sure, the former not so sure.

by hartator 6y ago

gruez 6y ago
I'd imagine most content creators come from countries that have tax treaties with the US.
- space_rock 6y ago
  Tax treaties are not simple. Doesn't mean you won't get double taxed
  - jjoonathan 6y ago
    It also doesn't mean that most complaints about 2x taxation aren't from people seeking 0x taxation while complaining that they're still stuck with 1x taxation.
- intellirogue 6y ago
  Some double taxation treaties only apply to salary/wage income and not self-employed (which YouTube would count as).
bryanrasmussen 6y ago
IIRC my reading of stories of US citizens working in other countries and paying taxes in those countries can deduct the money they have paid on the American taxes from the money they have to pay to the local taxes. Which makes sense otherwise nobody would want to leave the US to work in another country, given that other countries often have much higher taxes. At any rate I would definitely be deducting the American taxes, if I was hit with a situation like this. I guess though with Google doing it there are all sorts of things that won't be too the creator's benefit - for example if I got 10000 before and spent 2000 on things I could deduct in my home country and now I get 8000 because America takes 2000 I might not take that 2000 deduction in my home country because I need the money for other non-deductable things, whereas taking a deduction on American taxes will probably be more difficult for me than it is for deducting things locally - ugh, I can see how it would make you pissed off. Glad I don't deal with Google.
- hartator 6y ago
  Yes, but I think you have to file taxes as a foreign national with the IRS then. Just the Google receipt won’t be enough for your local taxes. And filling out taxes with the IRS might block you from getting a visitor visa to the US.
  - seanmcdirmid 6y ago
    > And filling out taxes with the IRS might block you from getting a visitor visa to the US. No it won’t. Plenty of non resident aliens file taxes with the IRS. You do need to get an ITIN to do it, but you’ll be able to deduct foreign tax paid against USA tax obligations. Not easy, but there are plenty of instructions on how to do it. The state department won’t ding anyone or even ask for filing a tax return with the IRS.
- seanmcdirmid 6y ago
  Note that the USA will allow you to deduct foreign taxes paid, but California won’t. It’s a good idea not to be a Californians before going abroad to work.

Deduct or expense? The later is almost for sure, the former not so sure.

gruez 6y ago

I'd imagine most content creators come from countries that have tax treaties with the US.

space_rock 6y ago
Tax treaties are not simple. Doesn't mean you won't get double taxed
- jjoonathan 6y ago
  It also doesn't mean that most complaints about 2x taxation aren't from people seeking 0x taxation while complaining that they're still stuck with 1x taxation.
intellirogue 6y ago
Some double taxation treaties only apply to salary/wage income and not self-employed (which YouTube would count as).

bryanrasmussen 6y ago

IIRC my reading of stories of US citizens working in other countries and paying taxes in those countries can deduct the money they have paid on the American taxes from the money they have to pay to the local taxes. Which makes sense otherwise nobody would want to leave the US to work in another country, given that other countries often have much higher taxes. At any rate I would definitely be deducting the American taxes, if I was hit with a situation like this. I guess though with Google doing it there are all sorts of things that won't be too the creator's benefit - for example if I got 10000 before and spent 2000 on things I could deduct in my home country and now I get 8000 because America takes 2000 I might not take that 2000 deduction in my home country because I need the money for other non-deductable things, whereas taking a deduction on American taxes will probably be more difficult for me than it is for deducting things locally - ugh, I can see how it would make you pissed off. Glad I don't deal with Google.

hartator 6y ago
Yes, but I think you have to file taxes as a foreign national with the IRS then. Just the Google receipt won’t be enough for your local taxes. And filling out taxes with the IRS might block you from getting a visitor visa to the US.
- seanmcdirmid 6y ago
  > And filling out taxes with the IRS might block you from getting a visitor visa to the US. No it won’t. Plenty of non resident aliens file taxes with the IRS. You do need to get an ITIN to do it, but you’ll be able to deduct foreign tax paid against USA tax obligations. Not easy, but there are plenty of instructions on how to do it. The state department won’t ding anyone or even ask for filing a tax return with the IRS.
seanmcdirmid 6y ago
Note that the USA will allow you to deduct foreign taxes paid, but California won’t. It’s a good idea not to be a Californians before going abroad to work.