US Tax experts for Foreigners wroking/earning income in the DR

CarpeDReam

New member
Feb 17, 2006
362
0
0
As some of you may know, I will be moving to the DR in less than a month. :bunny: I will be working for a US company (been working there for 5 yrs). At first I was going to be a 1099 and now it turns out I will still be a W2 and it's better for tax purposes. Anyway, I've asked around and googled and there's a lot of wrong info or people who just aren't too sure when it comes to what the tax implications for US citizens living abroad are. I finally found a company based out in Florida who are experts in taxes when it comes to expats earning an income abroad or just have any tax questions while they live there. I've called like 3 times and the person I've spoken to has answered all my questions and did not charge me a penny. She was patient and really knew what she was talking about. They are very knowledgeable; I will certainly be using them next year. It's a good resource even if you don't need an accountant but have a tax question especially since they do not charge for this. I'm not sure what the forum rules are about promoting companies like this so could someone let me know if it's ok to put the info here? if not, feel free to PM me for the contact info.

Thanks!
 

dropshort

Member
May 18, 2008
281
2
18
I used a firm recommended by my Canadian accounts.
They are in Boca Raton Fl.

PM me for the URL and contact name.

DS
 

CarpeDReam

New member
Feb 17, 2006
362
0
0
One of the few things I learned from my father is that something that is free usually isn't worth any more than one paid for it.

Their services are not free, but there are places that charge you a 'consultation fee.' The person I spoke to (Pam Smith) took her time to dumb things down for me and gave me different scenarios without asking me to sign up for something or pay anything up front.
 

CarpeDReam

New member
Feb 17, 2006
362
0
0
Quick video about the firm:

[video=youtube;YpYBAIWUbqY]https://www.youtube.com/watch?v=YpYBAIWUbqY#t=99[/video]
 

arturo

Bronze
Mar 14, 2002
1,336
97
48
income tax for US citizens who reside and work outside the United States

This subject is not so complicated when compared to the entire U.S. tax code. A definition of terms simplifies it greatly:

earnings such as interest, investment returns etc. vs. income such as salary & bonuses
income tax
foreign tax credit
residency

The U.S. tax code treats salary and bonsus (aka "ordinary income") differently than it treats earnings from investments and/or interest. Let's stick to salary and bonus for the sake of simplicity. I recommend consulting a qualified accountant for the other stuff. Salary U.S. citizens earn while living and working outside the United States is exempt from federal income tax, up to a certain amount. That amount can change from year to year. The tax liability for the amount beyond the established limit is, like most federal tax, graduated. Check the tax code for the latest information.

"Living and working" outside the United States is defined differently in U.S. tax law than it is defined by Dominican immigration authorities. There must be nearly one hundred threads on dr1 about Dominican immigration, residency renewal etc., so there is no need to rehash it. The U.S. Internal Revenue Service defines income earned while living outside the United States by calendar days. You must not be present in United States territory more than a certain number of days during the tax year (which is also the calendar year for most individuals). Depending on one's professional situation, the tax exemption can be rather valuable.

Once you qualify for the tax exemption, you can also extend it to the next year on a pro-rated basis if you resume working in the United States during the next consecutive year. Once you are no longer qualified, you can requalify based on the same criteria. You can mitigate any U.S. federal tax liability by claiming credit for taxes paid to foreign jurisdictions.

U.S. state tax rules (where there is state income tax, generally the more industrialized and urban states) vary. I won't comment further about state taxes because I am even less qualified on the subject than I am on federal taxation. I tried to limit my comments on federal tax to what I don't believe has changed since I studied the tax code as a law student more years ago than I care to remember. An accountant, even if he or she is also an attorney, will always be a better source of this kind of information.


As some of you may know, I will be moving to the DR in less than a month. :bunny: I will be working for a US company (been working there for 5 yrs). At first I was going to be a 1099 and now it turns out I will still be a W2 and it's better for tax purposes. Anyway, I've asked around and googled and there's a lot of wrong info or people who just aren't too sure when it comes to what the tax implications for US citizens living abroad are. I finally found a company based out in Florida who are experts in taxes when it comes to expats earning an income abroad or just have any tax questions while they live there. I've called like 3 times and the person I've spoken to has answered all my questions and did not charge me a penny. She was patient and really knew what she was talking about. They are very knowledgeable; I will certainly be using them next year. It's a good resource even if you don't need an accountant but have a tax question especially since they do not charge for this. I'm not sure what the forum rules are about promoting companies like this so could someone let me know if it's ok to put the info here? if not, feel free to PM me for the contact info.

Thanks!