Pay U.S. Taxes Working Here?

[lifeincnx]

I have a friend and his Thai wife coming here from the U.S. and he wants to work. If he works here for a Thai company, as an American citizen, does he have to pay U.S. taxes on that money as well as Thai taxes? What is the Thai tax bracket structure?

[gotlost]

US tax exempt for the first 83,500 USD.

[lanny]

As a US citizen, your friend is required to file a tax return and report ALL world wide income. If he qualifies, he may exclude up to $90,400 of income from US taxes but he must file a return to claim the exclusion. In addition, or as an alternative, he may claim a credit against any US tax for taxes paid to Thailand (on income subject to both US and Thai taxes.) So there should be little or no double taxation.

Remember, one of the great privileges of US citizenship or permanent residency is to file a tax return and pay taxes of all of your earnings.

[grumpyoldman]

Remember, one of the great privileges of US citizenship or permanent residency is to file a tax return and pay taxes of all of your earnings.

sarcasm detection alert !!!

[gotlost]

As a US citizen, your friend is required to file a tax return and report ALL world wide income. If he qualifies, he may exclude up to $90,400 of income from US taxes but he must file a return to claim the exclusion. In addition, or as an alternative, he may claim a credit against any US tax for taxes paid to Thailand (on income subject to both US and Thai taxes.) So there should be little or no double taxation.

Remember, one of the great privileges of US citizenship or permanent residency is to file a tax return and pay taxes of all of your earnings.

Your correct it is 90.4 k. i retired 5 yeas ago when it was lower.

[Sunbelt Asia]

The foreign earned income exclusion covers the first $US 92,900 earned in a year (for 2011) so long as the person qualifies for it under IRS regulations, found here: http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html

Thai Personal Income Tax Rates for Thailand can be found on their website and are as follows

Taxable Income / Marginal Taxable Income / Tax Rate (%)

0 - 150,000 (2008 onwards) / 150,000 / Exempt

150,001 - 500,000 / 350,000 / 10

500,001 - 1,000,000 / 500,000 / 20

1,000,001 - 4,000,000 / 3,000,000 / 30

4,000,001 and over / 37

http://www.rd.go.th/publish/6045.0.html

http://www.sunbeltlegaladvisors.com

[el jefe]

As a US citizen, your friend is required to file a tax return and report ALL world wide income. If he qualifies, he may exclude up to $90,400 of income from US taxes but he must file a return to claim the exclusion. In addition, or as an alternative, he may claim a credit against any US tax for taxes paid to Thailand (on income subject to both US and Thai taxes.) So there should be little or no double taxation.

Remember, one of the great privileges of US citizenship or permanent residency is to file a tax return and pay taxes of all of your earnings.

Your correct it is 90.4 k. i retired 5 yeas ago when it was lower.

Actually, I thought your original post was because you have to reply to every post, whether or not you know the answer. And as Sunbelt points out, your confirming of the $90,400 is still incorrect. 2010 limits are meaningless as the person requesting the info has not yet started working.

And, as a US citizen living abroad, "unearned" income (interest, dividends, rent) must also be reported to the IRS and there is no exclusion.

HTH.

[gk10002000]

Don't forget the "time" requirements. I personally have known people that stayed abroad after the work finished and before returning to the US in order to meet the time requirements. Check the current IRS publication 54 and others for the details.

"You must be one of the following.

A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.

A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.

A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. "

[Ponbkk]

As a US citizen, your friend is required to file a tax return and report ALL world wide income. If he qualifies, he may exclude up to $90,400 of income from US taxes but he must file a return to claim the exclusion. In addition, or as an alternative, he may claim a credit against any US tax for taxes paid to Thailand (on income subject to both US and Thai taxes.) So there should be little or no double taxation.

Remember, one of the great privileges of US citizenship or permanent residency is to file a tax return and pay taxes of all of your earnings.

I believe the limit to file a Thai tax return is invcome over 80,000.00 THB. If you do not quailfy for the US exclusion and wish to report Thai income and offset foreign paid taxes be sure to get tax paid receipts from the appropriate Thai department.

[SurfRider]

.

"Thai Personal Income Tax Rates for Thailand can be found on their website and are as follows"

Maybe I missed it, but I didn't see any category for investment income.

Suppose for example, a Thai National traded or invested in the U.S. Financial Markets and had 750,000 Baht in profits in one year. I'm assuming the U.S. would levy no tax, even though the money was technically made in the U.S. -- but what would the Thai citizen's tax responsibility to Thailand be? -- and what would the Thai tax be on 750K Baht of investment income ( or short-term Capital Gains )?

.

[BuckarooBanzai]

Don't forget the "time" requirements. I personally have known people that stayed abroad after the work finished and before returning to the US in order to meet the time requirements. Check the current IRS publication 54 and others for the details.

"You must be one of the following.

A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.

A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.

A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. "

This is very important to any US citizen working in a foreign country - especially A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. I have worked in many Asian countries being paid by an American firm and I believe about all of my taxes were exempted by spending in excess of 330 days abroad. That's anywhere one travels over the course of a year as long as it is not considered the US or one of it's possessions. I can not begin to tell you how much money was refunded at the end of the tax period - it was substantial. A point though is that if you are going to owe uncle sam than you must make contributions to the IRS throughout the year. If you you end up with only 325 days abroad, and owe the taxes, if they have not been already deducted and in the hands of the IRS, you could be heavily fined.