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    dessert's Avatar
    dessert Posts: 3, Reputation: 1
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    #1

    Jan 20, 2008, 11:15 AM
    Taxes while working Abroad
    To whom it may concern,

    I am currently on OPT status and will end at the end of January 2008. Upon that completion, my company will be sending me on a one year oversea assignment. I will be back after a year or maybe even shorter (i.e. sometime end of 2008) under H-1 or L-1 visa. As I will continue to get paid in the US, how will my taxes work out. I have heard that if you are not in the US for a certain number of days during the fiscal year, I would not need to pay any taxes.

    I would appreciate some advice and information to better prepare myself for what is ahead. Thank you.
    The Texas Tax Expert's Avatar
    The Texas Tax Expert Posts: 310, Reputation: 7
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    #2

    Jan 20, 2008, 12:57 PM
    If you are a non-resident and working abroad, you won't have a US tax liability.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 20, 2008, 03:09 PM
    Agreed; you will have NO U.S. tax obligation for income earned while overseas.

    Make sure your employer does NOT withhold U.S. taxes while you are overseas.
    dessert's Avatar
    dessert Posts: 3, Reputation: 1
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    #4

    Jan 20, 2008, 09:22 PM
    From what I understand right now that they will be withholding my taxes as they will be letting the government of the country abroad that I will be working at that I am paying US taxes.

    So not being in the US but still getting paid in the US does not mean I will be paying US taxes. How do I go about talking to my company? Is there a specific tax law that I can refer to to tell them not to withhold taxes?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #5

    Jan 21, 2008, 10:21 AM
    It is a general tax principle that non-residents who earn income OUTSIDE of the U.S. are not subject to U.S. tax laws. That's just common sense.

    If your company payroll does not believe you, have them email me.
    dessert's Avatar
    dessert Posts: 3, Reputation: 1
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    #6

    Jan 21, 2008, 08:48 PM
    What I was trying to say is that I am going to be continually paid in the USA... but I am working abroad on a work assignment. So how would tax pan out that way then?
    The Texas Tax Expert's Avatar
    The Texas Tax Expert Posts: 310, Reputation: 7
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    #7

    Jan 21, 2008, 09:58 PM
    Are you going to be a non-resident? If you are a non-resident and working in a foreign country, it doesn't matter, it is not taxable in the US. If you are a US resident, then that's a different story.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #8

    Jan 23, 2008, 12:37 PM
    Agreed; the key is your current status.

    If you are a non-resident alien, no taxes are due.

    If you are a resident alien, then, yes, ou are obligated to pay U.S. taxes on your income while working overseas.
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