Any possiblity to telecommute from overseas?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How are you going to sort out your taxes

It's not that difficult to sort out, but she will be double taxed.

Um, no, probably not. You do know there are tax treaties to allow taxpayers to avoid double taxation?

NP. I don't know the details, but I believe there is an upper limit to the amount which is exempt from double taxation. If OP and her DH are both working, they may well be above that limit. I do know that a friend went to work for his US-based employer in London, and part of the comp package/negotiation was that they would gross up his comp because it was above the limit and therefore subject to double taxation. It's certainly a good idea to research this.

Wrong. The upper limit (it's around $90k) is the EXEMPTION for EARNED income. In other words, if you work abroad, your first $90k is tax-free from the IRS standpoint. Anything over that is taxed, however there are tax treaties in place to prevent double-taxation anyway so you get a credit for taxes already paid to the foreign country.

Especially in Europe, where rates are higher, there should be no US tax because the US rate is lower. In other words, let's say you earn $100k and you live in France and they want $40k of it in taxes, while the US would want $30k. On your US taxes, you report you already paid $40k to France, and that's a credit against the $30k you owe the US = you owe nothing.

I lived abroad many years, and did my own taxes, so I know this well.

Another poster wrote about an exception when working for the US gov't -- that may indeed be the case. I only worked with private companies.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How are you going to sort out your taxes

It's not that difficult to sort out, but she will be double taxed.

Um, no, probably not. You do know there are tax treaties to allow taxpayers to avoid double taxation?

NP. I don't know the details, but I believe there is an upper limit to the amount which is exempt from double taxation. If OP and her DH are both working, they may well be above that limit. I do know that a friend went to work for his US-based employer in London, and part of the comp package/negotiation was that they would gross up his comp because it was above the limit and therefore subject to double taxation. It's certainly a good idea to research this.

Wrong. The upper limit (it's around $90k) is the EXEMPTION for EARNED income. In other words, if you work abroad, your first $90k is tax-free from the IRS standpoint. Anything over that is taxed, however there are tax treaties in place to prevent double-taxation anyway so you get a credit for taxes already paid to the foreign country.

Especially in Europe, where rates are higher, there should be no US tax because the US rate is lower. In other words, let's say you earn $100k and you live in France and they want $40k of it in taxes, while the US would want $30k. On your US taxes, you report you already paid $40k to France, and that's a credit against the $30k you owe the US = you owe nothing.

I lived abroad many years, and did my own taxes, so I know this well.

Another poster wrote about an exception when working for the US gov't -- that may indeed be the case. I only worked with private companies.

The residency requirement for this is that you basically don't visit the US.

[Anonymous]

OP, if money isn't a huge concern, can you take a long-term leave of absence or sabbatical?