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Old 02-13-2009, 01:03 PM   #41
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Originally Posted by Saml01 View Post
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.

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.

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Originally Posted by Saml01 View Post
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?
Yes that is true if you are paid by the US based company. Atleast as far as the SS benefits go. Here is an interesting atricle on that: How an Overseas Career Can Impact Your Social Security Retirement Benefits

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Originally Posted by Saml01 View Post
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.
It isn't a readily available publication online. It is thousands of pages that are so boring that no one really looks for them unless they have to for work purposes. So, they are only available though refence databases really. It is a constatly changing code that if simply published for free, would unusable in a very short time becasue no one would want to keep it updated for free.


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.
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Old 02-14-2009, 01:12 PM   #42
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Originally Posted by Saml01 View Post
Then I don't think you can claim the foreign earnings exemption that you mentioned.

That foreign earnings exemption is only if you worked abroad, received the check abroad and worked more then 330 days there.
sorry Sam, but the type of curacy they pay me in is not important. I work for a non American company, out side of the U.S.A. I assure you if not for the 330 day issues i had this year, I could clam the exemption.
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Old 02-14-2009, 01:19 PM   #43
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Originally Posted by Saml01 View Post
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.
As of September i do pay medicare, FICA, and all that other crap 7.42% of my pay(over 800 bucks last month). the only reason i have to pay this, is that i work on a US government contract. Some states require you to pay state tax on your full income. North Carolina you use your adjusted income from your federal tax forms, so most of the time i owe them nothing. This year on the other hand sucks.
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