how much money can i make over seas before i will be taxed?
like the title says. i am going to be overseas in china. i will not be working for an american company. if anything it will be with a chinese company or something on the side. how much money can i make in one year to bring back to america with out paying taxes on it when i come back?
Personal Finance - 2 Answers
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1 :
$0.00 As an American Citizen, you are legally obligated to report "ALL" money you earn inside and outside the United States. And thus pay taxes on it, regardless if you bring that money back into the US. For example, if you fly to London and sell somebody a pair of Jeans for $50.00, you owe taxes on that $50.00. Even if you take that money and deposit into a bank in London and leave it in that account, that money still needs to be reported on your 1040 form. And to make the matter worse, the IRS is now requiring that all citizens with foreign bank accounts report the fact they have a foreign bank account and how much money is in it. Check it out - The TD F 90-22.1 Form -- http://www.irs.gov/pub/irs-pdf/f90221.pdf I know, it sux. The IRS blows when it comes to milking us citizens of our money.
2 :
Alby is correct; sort of. His statement is true, but with LOTS of exceptions. This IRS articles details those exceptions: http://www.irs.gov/businesses/article/0,,id=182017,00.html
