Americans who have successfully left America for another country - What are our American tax responsibilities?
Also, what are the consequences of stopping payment of American taxes if you immigrate legally and decide to pay taxes only to the country you moved to?
Any links of online sources would be appreciated.
Thanks.
Answer:
US citizens are required to pay tax on worldwide income for as long as you are earning income and are a citizen. If you renounce your citizenship you become an expatriate. If the reason for renunciation is taxes, there are a lot of hoops you must jump through if you ever want to reclaim your citizenship. Details are available here:
http://www.irs.gov/businesses/small/inte...
If you work in abroad and meet certain requirements you can exempt up to $82,400 (double if you're married filing joint and both spouses work in a foreign country) from taxation. These exclusions and requirements are detailed in IRS publication 54:
http://www.irs.gov/businesses/small/inte...
There is also a foreign tax credit available for income taxed by a foreign government that is also taxable by the US. This is also covered in pub 54, page 32.
I'm not sure what the other countries do as far as foreign tax credit.
I think unless you denounce your citizenship you still have to pay taxes. Now that does not include money stashed in unnumbered off shore accounts. Sorry I have no on-line sources
Keep paying them as your still are a USA citizen.
You don't have to pay taxes in America unless you work here or have property here (house, cars, etc )
It depends on which tax you are talking about, and who you work for. ie. I work in France for a French company, Income tax is paid in France not the USA.
My husband and I live overseas half the year. We still pay our US taxes if we have worked in the US that year.Once e were gone for 1 1/2 years due to a death in his family and we had no income that year so we filed but didn't owe anything.Another country would not give you a tax credit for work done outside of their country.
Most countries base taxation on residency, not citizenship, but the US is one of the major exceptions to this rule. According to these sources (listed below), a non-resident citizen must pay taxes to the US government on all income derived from US businesses or other US sources. You are taxed the regular rate on income from US businesses, and a flat rate of 30% on income from other US sources. Income from foreign sources is generally not subject to tax by the US government.
If you want to stop paying US taxes, you can renounce your citizenship. If you stop paying taxes to the US without renouncing your citizenship, the US will consider you to be a US citizen violating a US law. I don't think that Australia or Canada will extradite you for tax evasion, but you could be arrested if you re-enter the country.
You usually get a choice of paying US or local taxes.
The Immigration information post by website user , MyTend.com not guarantee correctness.
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