So whos done their taxes?
#41
Sam, that makes perfect sense. I really should have made things more clear. What I was trying to state was where the money is deposited and what currency it is in is the irrelevant part. I misspoke when i stated that the only thing that mattered was that the work was done outside the US.
What normally happens is worked in a way that is beneficial to the company first and you second. Most of the time that is a positive correlation though. What they will do most of the time is the company in the other country will "hire" you and pay you. This way they can pay you less than they would otherwise have to, because if you stay there long enough, you pay no taxes. That is the case with most major projects. This ends up being cheaper for them and your US based company, but you end up with more money IN MOST CASES.
The other thing you have to worry about is the taxes that you may have to pay as a resident of the opther country if you are not careful. You must come in on a work visa and leave once it is up. This way you are still claiming your residence as the united states, but working outside of it and for a foreign company. Now you can get several work visas, but you do have to leave between them, even if for only a few days.
My response was to the original question of whether or not i matters that the person was paid in dollars to a US account. From all that i have seen and read, this holds to be true.
I am not a CPA and never will claim to be. I got my undergrad and masters in accounting with some strong research in foreign policy. I have limited real world experience filing tax returns with people in situations such as this one. Take that as my disclaimer that i think i know a lot, but many have forgotten way more than i have ever known about accouting.
There is someone else that i know of on the board that would know way more than me when it comes to taxes, but i'm not sure he has seen this.
#43
Really. I swear I always thought it was the other way. Example. You are a resident of the states, you went to work abroad, got paid over there, and then came back. It kind of doesnt make sense for you to pay tax here.
But if you got paid here, but worked abroad your employer still withdraws taxes from your salary, pays your benefits, and you have deductions for all the various SS and Medicares and etc. So you would have to pay taxes.
Makes sense?
Im trying to find some info online but I have no idea what to refer to it as, "foreign earnings tax exemption" doesnt work on google.
But if you got paid here, but worked abroad your employer still withdraws taxes from your salary, pays your benefits, and you have deductions for all the various SS and Medicares and etc. So you would have to pay taxes.
Makes sense?
Im trying to find some info online but I have no idea what to refer to it as, "foreign earnings tax exemption" doesnt work on google.
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