I will be going on an assignment overseas and have some tax questions. I'm a US citizen and own a house in my home state in the Northeast. I will be renting an apartment in Austria and working in Belgium during the workweek (flying back to Austria on weekends). I'll probably spend 192 days in Belgium, 144 days in Austria, 22 days in US and 7 days in the UK. I may do this for 1-2 years tops and then return to the US. Do I file taxes only in the USA? If I spend more time in the US, do I avoid paying taxes in these foreign countries? If so, how many days in the US? What would be the ideal set up for least tax liability, even if it means staying in one of these countries for longer. Ideally I would only owe US taxes, but wanted to know what the law says. Yearly salary would be over $100K. Employer is US based.
United States - 1 Answers
Random Answers, Critics, Comments, Opinions :
1 :
If you work in another country, you pay tax to that country. Within the EU, you would not have to pay tax to the country of residence, if different. If you are a US citizen, you must report ALL your income to the IRS, regardless of location where you worked. However, you can claim a deduction for the amount of tax paid to the country where you worked. Since European income taxes are generally higher than the US, this would probably bring your US tax liability down to zero. But you still have to file.
