I am holding H1B, and have foreign income, do I have to pay tax for it?
I need more details to appropriately answer your question. But if you have H1b (specialized skilled worker), instead of L visa (executive transfer to the U.S.), you must be employed at an U.S. company - therefore you probably received Form W-2 from your U.S. company. Considering those facts are correct, I would find a good CPA or EA (enrolled agent), who understand elections and treaty positions that you can take to minimize (not to be confused with evade :-) your tax liability. Lastly, to add to Mr. Taxman above - if you do have foreign (non-U.S.) financial accounts & paid tax there already, you may be eligible for foreign tax credit. And at any time the sum of those financial accounts exceeds $10,000 (I think), at any one time, you are required to disclose all of your non-US financial accounts, or face a stiff fine. (Form used is called TDF90-22.1). I heard that after 9/11 attacks, the treasury dept is enforcing this disclosing compliance. Hope this helps!
US taxes: Foreign company, foreign tax home, no W2?
You are creating your own problems and only making them become BIGGER problems in your future life time OK. wish I could find a professional to do my taxes RIGHT on. Whether you do get the 1099 form from THEM or you do NOT get the 1099 form from them you would still be required to Use your good daily written receipt books and records in order to correctly complete your 1040 income tax return during the 2013 tax filing season. Self employed independent contractor using your daily written receipt book records to report your gross income on the schedule C or CEZ along with the SE to determine your NET PROFIT or LOSS from your business income during the tax year for this purpose. SE your social security medicare tax amounts that you would OWE on your NET profit amount that would end up the page 1 line 12 from the schedule C and any SE tax owed page 2 line 56 and page 1 line 27 Deductible part of self employment tax attach schedule SE line 27 $$$ amount. Starting, Operating, or Closing a Business Starting a Business Starting a business could be exciting. If you're considering starting a business, start here. This section provides information on everything from a checklist for a new business, to selecting a business structure, and more. www.irs.gov/Businesses/Small-Businesse... www.irs.gov/Businesses/Small-Businesse... Go to the www.irs.gov website and use the search box for Publication 54 (2012), Tax Guide for U.S. Citizens and Resident Aliens Abroad www.irs.gov/publications/p54/index.htm... Then go to the chapter 4. Foreign Earned Income and Housing: Exclusion – Deduction www.irs.gov/publications/p54/ch04.html Hope that you find the above enclosed information useful. 05/24/2013
If I am a US citizen, but work for and am paid by a foreign company do I still have to pay US income taxes on money earned ?
Because you are a US citizen, the rule is as follows - even if you are residing outside the United States, you are subject to U.S. federal income tax and reporting on your worldwide income. This includes income paid to you as compensation from a foreign company. Citizens, even those living and/or working abroad must annually report all of their income to the IRS, whether the income is from U.S. sources or foreign sources and whether or not the income is taxed or reported in the new country of residence. This system of citizenship-based taxation (rather than residence-based taxation) is unique to the United States (the only other country that taxes its citizens in this manner is Eritrea).For some further pointers on this topic, please see our recent article on Money 101 regarding common U.S. expat tax myths:http://time.com/money/4298634/ex...That being said, the good news is both U.S. domestic tax law and U.S. tax treaties contain a number of provisions that are designed to prevent “double taxation,” or taxation on the same income in both countries (e.g., the U.S. and the new country of residence). Domestic law provisions include the foreign earned income exclusion (for 2016, you can exclude up to $101,300 of your foreign earned income), the foreign housing exclusion, and the foreign tax credit. These provisions, in many cases, can reduce or even eliminate the U.S. federal income tax that would otherwise be due by you. Keep in mind, however, that even if no U.S. tax is owed, a U.S. tax return still generally must be filed in order to benefit from these provisions, and the failure to do so can result in severe penalties.In order to escape the U.S. tax net, you may consider renouncing your citizenship, but this involves a number of unique tax issues. Please see our recent article on CNBC US Home for an analysis of these issues.http://www.cnbc.com/2016/05/17/e...