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Tax Obligations for a Permanent Resident if They Work Outside the Country

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  • 06-04-2017, 09:29 AM
    gratefulgirl
    Tax Obligations for a Permanent Resident if They Work Outside the Country
    If someone intends to live and work out of the country for a period of time and does he require to pay double taxation?
  • 06-04-2017, 10:05 AM
    flyingron
    Re: Tax for Permanent Resident if They Work Outside the Country
    As far as the IRS goes, here's probably what you need to know: https://www.irs.gov/individuals/inte...come-exclusion
    We can't answer your question directly with the information above (we need to know how long, who you are working for, etc...).

    If you intend to reside outside of the US, you need to take steps to avoid having the US consider you to have abandoned your permanent residency.
  • 06-04-2017, 10:34 AM
    Taxing Matters
    Re: Tax for Permanent Resident if They Work Outside the Country
    Quote:

    Quoting gratefulgirl
    View Post
    If someone intends to live and work out of the country for a period of time and does he require to pay double taxation?


    As long as you are a lawful permanent resident of the U.S. you are taxed like a citizen of the U.S. That means the U.S. will impose tax on all your income no matter from where the income arises. However, U.S. tax law does provide three means for citizens and residents to mitigate the problem of double taxation of their income (i.e. taxation of the same income by the U.S. federal government and another country). The first is the foreign tax credit, which gives you a credit against your U.S. income tax for the income tax you paid to another country. The second allows you to deduct the foreign tax paid, though in most most cases the credit will be better than the deduction. Third, for U.S. citizens and residents who have income from working in a foreign country you may qualify to exclude some or all of your foreign earned income from your U.S. income. It is this last one that flyingron gave the link. Any citizen or resident living outside the U.S. really should read IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad. It has a lot of useful information in it that you need to know.
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