US Taxes & UK Work
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- mrbee2828
I have a potential project coming at me from the UK. I've got no idea how taxes here in the US work with international income. Has anyone had any experience in the US with international work?
xoxo
- mydo0
Get an off shore bank account and don't declare it.
then you don't have to pay tax or worry about it.
- slappy0
Then just attach a credit card to the account and use it to suck money out of the account. I think its illegal to do that now though.
- mydo0
To give a little more detail...
if you earn money in america you have to pay tax no matter where the money came from. but if you are american and earn money in the uk (provided you have a work visa) then you have to pay tax in the UK. you can bring back that money to america tax free... so as long as the money wasn't paid into an america account, there is nothing to say you didn't earn the money out of the country...
it would be really hard to prove unless someone had access to your email and invoices.. it's up to you if you give them to the tax office, and they can't look at your off shore accounts.
this is the wonderfull about the internet. :D
- pr20
what mydro said. unless u declare it they won't know u earned it -- just keep your bank accounts under 10k... cause othervise the bank has to declare it to the tax man.
- akrokdesign0
how about they pay you via paypal, good idea?
- mydo0
paypal steal %'s like the tax men...
get a bank account in bermuda, looks really cool when you pull out your bermuda credit cards too...- jersey island is tax free also. you know the island in between england and france.akrokdesign
- question is doh. what the minimum to open an account. I bet its high.akrokdesign
- but yeah, kind a cool.akrokdesign
- I opened an account yesterday with NO money in itDancer
- paypal doesn't take nearly as much as uncle sammrbee2828
- akrokdesign0
how about a bank account in UK, good idea?
- pr20
...plus u look like a drug dealer instantly -- so ladies will fall all over u.
- Dancer0
If you are looking to earn serious £££ then I would declare. If under £4,500 then I wouldn't worry ($8,500 – $9,000).
- ribit0
The US tax rules aren't that silly... Even though they want you to file a US tax return no matter where you are working, there are exclusions for your foreign earnings, it seems up to $87,600?:
From About.com: "Generally speaking, if you live and work outside of the United States, then you can exclude all or part of your foreign wages from US taxation. To qualify for the foreign earned income exclusion, you must :
Work and reside outside the United States.
Meet either the Bona Fide or Physical Presence tests.
If you qualify, you will be eligible to exclude up to $87,600 annually in foreign wages."- doh!.. you are talking about international CLIENTS... carry on...ribit
- mrbee28280
Thanks, I'm glad I got some serious answers. Basically the job is for $5000. The guy wants to Paypal. All that's good and I have no issue filing it. The obvious thing though is that he won't be sending a 1099 in January/Feb of 09. I'm just basically claiming extra income.