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    twint's Avatar
    twint Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Jan 13, 2006, 12:24 AM
    Overseas Employee
    I am working overseas as an employee not contractor. We get paid and they take out taxes. The question is how many exemptions should one take? Do you try to max it out or just use min say 2? If anyone knows of web pages where I can read about this and more please advise. Have a good one. Thanks for the info...
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 13, 2006, 06:58 AM
    Twint:

    For whom do you work? If it's the U.S. government, then you cannot claim the foreign pay tax exemption (forst $80K is exempt from income tax).

    If you are single and are not making mortgage payments, then claim "2" exemptions on your W-4 will probably mean you will have to write a check come April 15th instead of getting a refund, This, BTW, is a good thing! Any refund is an interest-free loan to the U.S. government.

    If you do not want to write that check, then only claim "1" exemption.
    twint's Avatar
    twint Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Jan 13, 2006, 12:26 PM
    Thank you for the info Sir.. I am working for Dyn and on a 90 day/ 30 off rotation.. So I will be unable to met the 330 day requirement... I spend my time in the States... Basically I have to figure out how much (%) to hold back out my check the met/ exceed the taxes at the end of the year. The company already takes out FICA and Medicare.. I live in FL so no State tax to be concerned with.

    I normally file married jointly... Thank you again and have a great day..
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 13, 2006, 12:31 PM
    Twint:

    Check out page 262 of the 2005 IRS Pub 17 (you can download it from www.irs.gov) to see which tax bracket you are in. Then it's simple math.
    twint's Avatar
    twint Posts: 3, Reputation: 1
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    #5

    Jan 13, 2006, 12:52 PM
    Roger that! Thank you Sir...
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