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Old Oct 17, 2002 | 8:47 am
  #33  
jja34-1
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Join Date: May 2001
Location: The Wild West
Posts: 1,349
Having a tax consultant/accountant is part of my package. PWC may not be perfect, but they seem to at least mean well. I've read the relevant documents and it's pretty clear that you must pay taxes in both U.S. and the place of your residence. Any U.S. resident who is getting out of paying any taxes whatsoever is looking for trouble.

You're basically required to pay U.S. SS and Med even if you're a non-resident citizen. Some states may also require you to file a return even if you are a non-resident citizen. You generally earn a credit for the taxes you pay abroad against any U.S. taxes you would owe, subject to certain exceptions. A minimum income tax is normally imposed by the U.S., no matter how much you've paid in taxes abroad. Finally, the first $80,000 is exempt from U.S. taxes when you have qualified as a non-resident citizen, but any amount after that may be taxed, subject to terms of the double taxation treaty with your country of residence.

It's more of a headache than anything else. The U.S. is one of the few, if not the only country in the world to require you to pay taxes regardless of where you live.
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