Tax Question

[Dakhar]

OK folks,

I have a work permit, married (Thai with resident US status) with one child.

I earn income in the US, and in Thailand. Do I report the income that is earned in the US to Thaiand? The money earned in the US, stays in the US. In other words it is placed in a bank account in the US that I monitor via the internet.

I do contract work, and company in the US will file a "1099" with the US/IRS. (meaning the income will be reported to the IRS)

Folks, it is not that I am trying to avoid paying taxes, I am just wondering how to go about it. Who do you guys use to prepare your taxes?

Thanks, in advance.

[Upcountry]

Hi Dakhar,

The US and Thailand have a tax treaty, which means you can avoid being taxed twice on income earned in either country.

You don't have to report your US income, nor do you have to pay taxes on it in Thailand, since you earn it in the US.

UC

/I just muddle through the tax forms on my own.

[Tywais]

I do contract work, and company in the US will file a "1099" with the US/IRS. (meaning the income will be reported to the IRS)

Thanks, in advance.

As Upcountry said, you don't have to report your US income to the Thai authorities but is necessary the other way around.

I also earn income in both places. However it is important that you fill out a form 2555-EZ for Foreign Earned Income Exclusion for the earnings you make in Thailand. You are excluded paying taxes on foreign income up to 80,000USD (not sure if this amount is current but you can download the 2555-EZ and it will tell the current exclusion amount). Be sure to read the rules on Residence test to be sure you qualify. If you don't file it and the IRS finds out then you will have to pay full taxes on the Thai income plus penalties.

Edited May 21, 2006 by tywais

[MattFS218]

You are only taxed in Thailand on foreign earned income if you bring it into Thailand. The rules (I think) are purposly sketchy (think Tasksin), so it really depends on how honest you are.

I also had a WP, and US earned income reported on several 1099s last year, and didn't report anything to Thai tax authorities about my US income, but did report all of my Thai income and qualified for the Foreign Earned Income Exclusion.

I believe publication 51 from the IRS details reporting.

[Dakhar]

I appreciate the responses

[kudroz]

The US and Thailand have a tax treaty, which means you can avoid being taxed twice on income earned in either country.

You don't have to report your US income, nor do you have to pay taxes on it in Thailand, since you earn it in the US.

Actually, you don't have to report your US income to Thailand only if you don't rapatriate the funds in Thailand. If you rapatriate US earned income (or worldwide income) into Thailand, you have to report it to Thailand.

Since you are a US Citizen, your US earned income will be taxed in the US regardless of your tax residence. Because of the DTT (double tax treaty) between Thailand and USA, the Thai tax authorities will credit you the US taxes you paid on any Thai taxes you may owe.

You are considered a Tax Resident of Thailand if you are in the Kingdom for an aggregated period of 183+ days per calendar year. You are subject to pay tax on your worldwide income only if you repatriate the funds in Thailand.