US ex-pat Tax Filings - and more

LTSteve

Gold
Jul 9, 2010
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http://www.nytimes.com/2014/12/08/o...n-region&WT.nav=c-column-top-span-region&_r=0

this a rather concise overview of ex-pat tax responsibilities.... written by the Mayor of London

might help some RD residents who are always asking about what to file and what exemption they are entitled to

If you are a US citizen you need to file a tax return. Go to IRS.gov and you can find out a lot of info on filing a return while living and or working in a foreign country. It really is not the difficult unless you have a complicated work history.
 

Gringonazo

Member
Sep 27, 2014
131
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It's really a convoluted mess. I would imagine that there are a few members of this community who have both US and Dominican incomes. If one is a US citizen, he will not have to pay US income tax on Dominican wages up to $USD 97,600 earned per year. He can, though, expect to pay Social Security and Medicare on his Dominican income up to 15.3 percent (he will pay the full 15.3 percent if he is a 1099 employee in the States). He will then pay US income tax on his US income and Social Security/Medicare on his US Income, as well. Such is the case for me. I will have to pay Dominican income tax and US Social Security/Medicare on my Dominican income and US income tax and Social Security/Medicare on my US income. I'm a 1099 employee. Oh the joy!!!

I spent some time researching this, and I spoke to a very learned and knowledgeable accountant who informed me of this. I hope to be pleasantly surprised at tax season, but I'm not holding my breath. What I am (with)holding is enough to cover what I anticipate my tax liability will be so that when the time comes, I'll either be pleasantly surprised or not surprised at all. I hope this contribution to the thread helps. Bendiciones.
 

william webster

Platinum
Jan 16, 2009
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If you are a US citizen you need to file a tax return. Go to IRS.gov and you can find out a lot of info on filing a return while living and or working in a foreign country. It really is not the difficult unless you have a complicated work history.

I think one of the complaints is that yopu need to file only to produce $0 taxes owed return ( many being below the $97,000 threshhold)

Also, many say the filing is NOT that easy.....

Imagine the cost for The US to accept and review all those returns that generate no taxes...
 

william webster

Platinum
Jan 16, 2009
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so Derf....

you don't need to prove you have no tax liability.... just call them and give them your word ??

Hello IRS?
Derf calling....

just want to tell I won't be filing a tax return this year.... I have too little to report

catch you on the rebound.



I don't think so Derf..... to the IRS, 'Zero' is a number..... and they want to see it

AFAIK........
 

BigTex

New member
Sep 8, 2013
20
0
1
So if I'm a 1099 contractor paid in USD to a Texas bank for my Texas LLC, then I don't need to tell the Dominican Government about that income and just need to keep Uncle Sam happy? If so, that is what I thought and I'm currently doing (If be any chance I'm happen to live in Sosua right now). This is my first year as a 1099er so I'm withholding a higher rate just in case my usual tax rate is a low this year.
 

Cdn_Gringo

Gold
Apr 29, 2014
8,671
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I'm not American so I can't say I know much about US Tax filing...

You failed to mention (or I missed seeing) where the money you earned is coming from. If from a Dominican entity for work performed inside the DR, then yes you are obligated to report that income to the DR Govt. If this is the case, you can safely bet that the entity paying you is accounting for the expense on their tax return. If the income is not performed for a Dominican entity and you perform it sitting in your living room in Sosua, for an external entity, then you are correct, you wouldn't need to report that here.
 

tommeyers

On Vacation!
Jan 2, 2012
1,599
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I live in Santiago
so Derf....

you don't need to prove you have no tax liability.... just call them and give them your word ??

Hello IRS?
Derf calling....

just want to tell I won't be filing a tax return this year.... I have too little to report

catch you on the rebound.



I don't think so Derf..... to the IRS, 'Zero' is a number..... and they want to see it

AFAIK........

WW: follow the link to see if filing is necessary. I believe you will find that derf is correct.
 

windeguy

Platinum
Jul 10, 2004
42,211
5,966
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Derf is correct and incorrect-same with WW-You first need to file that you have zero tax with income under the threshold-the next year, if you have the same income that produces no tax, then you need not file.

Interesting that the IRS site does not agree with what you state.
 

BigTex

New member
Sep 8, 2013
20
0
1
I'm not American so I can't say I know much about US Tax filing...

You failed to mention (or I missed seeing) where the money you earned is coming from. If from a Dominican entity for work performed inside the DR, then yes you are obligated to report that income to the DR Govt. If this is the case, you can safely bet that the entity paying you is accounting for the expense on their tax return. If the income is not performed for a Dominican entity and you perform it sitting in your living room in Sosua, for an external entity, then you are correct, you wouldn't need to report that here.

No Dominican's here. I'm paid by a Colorado company. Of course ACA aka Obama Care has them a bit worried as I'm spending 5.5 months out of the country. I told them to just close their eyes and believe that I'm still in Texas.
 

windeguy

Platinum
Jul 10, 2004
42,211
5,966
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No Dominican's here. I'm paid by a Colorado company. Of course ACA aka Obama Care has them a bit worried as I'm spending 5.5 months out of the country. I told them to just close their eyes and believe that I'm still in Texas.

As far as the ACA is concerned, you are still in Texas if you are only out of the country 5.5 months each year.
 
Aug 6, 2006
8,775
12
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so Derf....

you don't need to prove you have no tax liability.... just call them and give them your word ??

Hello IRS?
Derf calling....

just want to tell I won't be filing a tax return this year.... I have too little to report

catch you on the rebound.



I don't think so Derf..... to the IRS, 'Zero' is a number..... and they want to see it

AFAIK........

The IRA knows all about your Social Security payments. Anything that you get sent a document for that says "This information is being provided to the IRS", you can be sure they know about.

If you try any tax filing program from on line (I use Tax Act), you can come very close to knowing exactly how much you will owe the IRS. If you declare too little, they will tell you to file quarterly. If you declare too much, you are making a loan to the IRS at zero interest. Ideally, you calculate it so you have to pay them under $300 or so, and everyone will be happy, and no one will be audited.