Any American Expats Not Paying Taxes?

[Dancali]

I have a vague idea of the American expat tax situation but I'd like more info. I've looked at the actual tax forms themselves and it's still not clear.

Who here is taking large tax cuts from being out of the country a lot?

I earn my money in the US but I live in Thailand. I have an export business.

This time around, I'm in LOS from march 2004 til christmas 2004. Then I'll be in los from late january 2005 til christmas 2005.

Do I have to pay full taxes for 2004 even though I'd have been out of the country for 9 months? Are you home free if you were away for any 11 month period in a row? If so, I would have already had 11 months away by March 2005.

Are you still responsible for Social Security and Medicare taxes? I think that I'll have to pay these nomatter what. This is still like 15% of income.

And if anybody has any experience with expat taxes for those from California I'd like to know.

Thanks.

[ProThaiExpat]

I have a sophisticated CPA who has done my taxes for 15 years and through him, it is my understanding that the country and state from which you derive your income is the primary tax taker.

He files a Fed tax form for me for income derived anywhere in the U.S. (I have lived in Thailand for three years without returning to the U.S.) and a California Non-resident tax form for income derived from California.

When I lived in Hawaii, that state also got a tax filing for the income derived from there, California got a non-resident tax form for the income derived from there and of course the Federal return for any income derived from the U.S.

My understanding is that there is a 75K USD exemption on your Federal return for income derived from sources overseas, ie. non-U.S. source.

I do not believe a U.S. citizen is ever relieved of the requirement to file a Federal income tax return. Clearly, if you don't derive income from any individual state, ie. federal salary or pension, then no non-resident state tax filing is required.

I am unaware that your living abroad or absenting yourself for any length of time affects your obligation to pay U.S. taxes assuming they are derived from the U.S.

PM me if you want further detail.

[Crash999]

I have a vague idea of the American expat tax situation but I'd like more info. I've looked at the actual tax forms themselves and it's still not clear.

Who here is taking large tax cuts from being out of the country a lot?

I earn my money in the US but I live in Thailand. I have an export business.

There is a foreign-earned income exclusion of US$80,000 this year. To qualify you either have to be a resident or be here for 330 days out of 365. For Thailand residency would mean you're not here on a tourist visa. There's also a foreign housing exclusion. There aren't any state taxes and there's no social security contribution.

I'm in a similar business to you- exporting to the US- our company invoices US companies but the money is paid to (and earned in) Thailand so pays Thai tax, not US taxes.

If you own your own company then there's a whole other set of rules. Best to download all the relevant publications and have a long read: http://www.irs.gov/faqs/faq13-3.html

[sbk]

I do not believe a U.S. citizen is ever relieved of the requirement to file a Federal income tax return. Clearly, if you don't derive income from any individual state, ie. federal salary or pension, then no non-resident state tax filing is required.

Actually, I do believe there is a minimum income requirement, under that and you aren't required to file. Can' t remember what it is, probably under 12,00/yr.

[Paleface]

I do not file income tax.

Not required if earning under $6,000 for single, or $12,500 for married.

Wife is Thai and in Thailand but I can still claim married filing jointly.

[Dancali]

I have a vague idea of the American expat tax situation but I'd like more info.  I've looked at the actual tax forms themselves and it's still not clear.

Who here is taking large tax cuts from being out of the country a lot?

I earn my money in the US but I live in Thailand.  I have an export business.

There is a foreign-earned income exclusion of US$80,000 this year. To qualify you either have to be a resident or be here for 330 days out of 365. For Thailand residency would mean you're not here on a tourist visa. There's also a foreign housing exclusion. There aren't any state taxes and there's no social security contribution.

I'm in a similar business to you- exporting to the US- our company invoices US companies but the money is paid to (and earned in) Thailand so pays Thai tax, not US taxes.

If you own your own company then there's a whole other set of rules. Best to download all the relevant publications and have a long read: http://www.irs.gov/faqs/faq13-3.html

I'll get around to the long read eventually. Even a slight difference in paying taxes is a lot of money.

I ship to America, but run everything from Thailand. I have a business address in California and a single part time worker there to handle stuff that gets mailed to me.

This is my own business.

Perhaps if I went through the trouble of setting an official Thai company I could then say it's money earned here and then pay only Thai taxes which I'm pretty sure are quite a bit less.

Seems kind of unfair to have to pay for the highways, police, firemen, legal system etc. when I'm not even in the country to use those services.