Do I pay taxes if I live/work in Qatar (london) for 3 years?
I am currently a US citizen, have lived in the US all my life. If I take a job overseas for a few years. I believe my salary is locally tax-free, but do I have to pay taxes in the US, or do I get out of taxes completely??
United States - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Logically you will be paying taxes to somebody. *Where* exactly will you be working? You state Qatar (a country that doesn't tax "personal income" such as wages) and then you mention London, UK (which will tax you). Please read IRS publication 54. If you meet the physical presence test (330 days out 365), you may be able to exlude the first $85,700 of income plus possibly more from housing. (This assumes you were out of the US starting on 1/1, otherwise it's prorated). Any income over the exclusion is still taxed. If you do not qualify for the foreign earned income exclusion, then you may qualify for the form 1116 to get a foreign tax credit for any income taxed by both the US and UK.
2 :
All U.S. citizens are required to pay report all their income (except gifts), from any source, anywhere in the world, to the IRS and to pay tax on it (except for certain tax-exempt investments). Although there is a credit available for "foreign taxes paid", it does not apply to you, because you said that you were not paying taxes to the foreign government. Even if you are not required to pay U.S. taxes on this income (see answer above from v.b.), you will still be required to report it to the IRS and to pay taxes on your other income (investments, bank interest, dividends, capital gains, alimony, etc.). Ignore what v.b. said about the U.K. if you are talking about a different London. There are several in the world.
3 :
1. A U.S. citizen or resident alien, you must report income from sources outside the United States (foreign come) on your tax return. This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2, Wage and Tax Statement, or Form 1099 from the foreign payer. 2. If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. You will use Form 2555. If you can't exclude the income, and you paid taxes in the foreign country, then you can use Form 1116 to get foreign tax credit. For details, see Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
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Title : Do I pay taxes if I live/work in Qatar (london) for 3 years
Description : Do I pay taxes if I live/work in Qatar (london) for 3 years? I am currently a US citizen, have lived in the US all my life. If I take a ...