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			How to avoid US taxes when working abroad by anonymous Article Rating = 4.06 (18 votes)

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Category: Legal Hi all..... I'm not a tax expert or CPA, but as someone who has worked abroad a few times, here are a few hints for legally reducing your tax burden when you work out of the country....Don't take this as gospel (ie...no warranty on this info, don't sue me, and verify this with a tax expert), but I wish I knew all this when I started. 1. Save all your receipts. If you earn money out of the country, it's amazing what you can deduct (plane flights, accomodation, etc...). It's likely that for most casual work, your expenses will exceed income. Taxi receipts are great so get as many as you can. 2. Consider staying out of the country if you earn a decent amount. There is a deduction of $70,000 for people who earn money out of the country if you stay out for more than a certain number of days (check with a tax guy for the exact number, but I think it's 330-335) in a 365 day period. So if you are at 300, it pays to take a month's vacation in the Bahamas for a $70,000 deduction. 3. If you pay taxes out of the country, you get a credit for those taxes on US taxes. Each dollar earned reduces US taxes by a dollar which is better than a deduction which earns you about 35 cents. Plus you can carry it forward or backward if you have excess tax credit. 4. Check the tax treaty for your country BEFORE you leave. For example, if the tax rate in the country you are going to is 48% (common in Europe) and the rate in the US is 35% (include social security tax/self employment tax), make sure you do things to ensure you will be taxed in the US (ie. maintain a US residence/mailing address, bank account, etc.). This could mean thousands of dollars, especially if you can somehow take the $70,000 from item 2 so know your tax treaty! 5. You always have to file a US tax return if you are a US citizen. No matter how disconnected with the US you are. Of course, if you don't earn $70,000, then you may not pay anything, but still, you have to file. About the author... Submitted By anonymous Description not a tax expert or CPA Web Page not available Other Articles in this Category How to Deal With a Bill Collector by shelala How to utilize small claims court. by Other Sites Storkin.com - Baby and Pregnancy Tips and Discussion Health Articles Menopause Symptoms HIV/AIDS Symptoms West Nile Symptoms Diabetes Symptoms Pregnancy Symptoms Tech Sites Dell DJ Hacks Read other Articles - click here.