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13

For instance, they are reporting my income to California even though I am not a U.S. resident. But you are. The US doesn't have a notion of physical presence, you're resident by mere citizenship. In case you didn't know that before - US citizens and residents (those who are not citizens, but pass the physical presence/green card test) are taxed on their ...


12

You should fund the 401(k) and get the 4% matching because it's free money. When you leave the US, patience is a virtue to get the money penalty-free: Rollover to an IRA. Take "Substantially equal periodic payments" for 5 years or until age 59 1/2, whichever is longer, to avoid the 10% penalty. A long payout time for someone starting out, but penalty-free. ...


11

No — the U.S. is the only country that imposes such a requirement on its citizens. Eritrea is another country (the only other...) in the world which taxes non-resident citizens, but it is not a regular income tax. Every other country in the world taxes by residency and not by citizenship. Canadian citizens who no longer reside in Canada (i.e.: have ...


11

If you're working as an individual and not a company then you should submit W8-BEN. If you're invoicing the client as a LLC/Corp/Partnership or anything else other than your own private name - you should submit form W8-BEN-E. You don't have to have a US tax id number, but if you do - write it down. It's either the SSN or ITIN. If you don't have a SSN (...


10

As a general US income tax rule (e.g. §861(a)(3)), if the payment is due to services actually performed in another country, then the location of the bank or branch taking your salary is not going to be relevant. Go ahead and take your compensation in the US, if that is convenient for you. This is particularly important for working in a country with the ...


9

Assuming that the NRE (NonResident External) account is in good standing, that is, you are still eligible to have an NRE account because your status as a NonResident of India has not changed in the interim, you can transfer money back from your NRE account to your US accounts without any problems. But be aware that you bear the risk of getting back a much ...


8

Do NOT talk to the IRS on your own. Get a EA/CPA licensed in the US and operating in your home country to help you catch up. US embassies have lists of some of those, check the embassy in your country. The penalties for US citizens living abroad are DRACONIAN. Where a US resident would get a slap on the wrist - you may be driven bankrupt and thrown into ...


7

Yes, you will be able to keep these accounts open. I have had a UK bank account for sixteen years without living in the country. As littleadv says, watch out for US regulations about reporting foreign holdings.


6

FBAR should be filed if total balance of all your foreign accounts is more than $10000 any time during the year (even if only for one day). My TurboTax handled that well last year, including filling the FBAR for me. Shouldn't be an issue, just don't forget to file it (not with your IRS package, it goes to a different place), if you need to. On the tax ...


6

However Vanguard has told me that only a "lawful permanent resident of the United States" can invest in the funds. Does this mean I am not allowed to invest in any mutual funds in the US? No, it means that you cannot invest through Vanguard directly. Open a brokerage account and invest in publicly available funds. The answer on the site you linked ...


6

As a U.S. citizen — regardless of how you became one, or where you currently live — you must file a U.S. income tax return each year. Your worldwide income must be declared on your U.S. income tax return. I found a document on the subject, "U.S. Citizens Living in Canada" [PDF], from BMO's full-service broker, BMO Nesbitt Burns. Here's a notable ...


6

Roth deposits are made with post tax money. It's not like there's a special rate. When you earn a dollar, it's taxed at your marginal rate but at that moment, it doesn't know your plans for it.


6

I haven't ever declared that I'm residing abroad and in Europe There is no declaration you need to make in India that you are Non-Resident. You acquire the status once you are out for more than 182 days. I don't have an NRO/NRE account and I've never files taxes as an NRI. Not having NRO/NRE account is fine. Not filing taxes as NRI is advised, however ...


6

You are likely to find that acting as an agent to invest other people's money for them and return them an income is a regulated activity. If so, it could be extremely burdensome for you to meet all the regulatory requirements, acquire any needed qualifications, pass any necessary tests, arrange for any necessary ongoing audits, make all the ongoing ...


6

UK banks are permitted to open accounts to non-residents. Whether resident or not, you will need to prove your identity in order to open a bank account. Your local bank may even be able to handle all the paperwork and set up an account on your behalf if it has a correspondent banking relationship with a British bank. The biggest four UK banks, Barclays, ...


6

No, so long as you remain a non-resident, you will not need to file a US tax return. Your wife will need to continue to file either as Married Filing Separately or, possibly, as Head of Household: https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad-head-of-household


5

Yes, you can. You need to come to the bank with 2 different types of ID (one of them will be your passport, some banks accept an existing credit/debit card as a second ID) and fill the form W8-BEN. If you're going to have a property manager company managing the house for you, they'll similarly need your id information and form W8-ECI. Check if there's a ...


5

Besides money and time lost, it is pretty clear that most tax advisors are not well versed in non-resident taxes. It seems that their main clients are either US residents or H1B workers (who are required to file as residents). I share your pain on this one. In fact, even for H1B/green card holders or Americans with income/property abroad vast ...


5

I agree with DJClayworth: nothing prevents you from keeping a US account. But some US banks are not very good at providing service to non-residents, especially if they are not US citizens. As an example, now that I'm a "nonresident alien," my US bank – where I have been a customer for more than twenty years – will no longer accept an instruction for a ...


5

Yes, that person would be obligated to pay taxes on earnings from investments. This is not all that unusual; a number of Canadians retire to Florida or some other warm climate, but their retirement funds are in Canadian bank accounts. In some cases, you may not actually have to pay tax. You pay 15% federal tax on the first $43,561 of taxable income, but get ...


5

To build a US credit record, you need a Social Security Number (SSN), which is now not available for most non-residents. An alternative is an ITIN number, which is now available to non-residents only if they have US income giving a reason to file a US tax return (do you really want to get into all that...). Assuming you did have a reason to get a ITIN (...


5

You can definitely open an IRA and roll the money over. I suggest instead of trying opening online calling the institution and asking what would be the procedure in your specific case. If not, I will have to cash out my 401K. Who do I contact to find out if my country has some sort of deal with the US in regards to taxes? I would of course prefer to ...


5

If you're a salaried employee working for a foreign employer in a foreign country, you don't need to pay the FICA taxes. Also, if there's a totalization agreement between the US and the other country - there would be special rules. Otherwise, as long as you're self employed, you'll have to pay the SE (not FICA) tax on your income. The additional medicare ...


5

Taxability does not depending on transfer of money to NRO. It depending on your tax status in India. Assuming you have spent more than 182 days outside India for the financial year 1 April 2015 to 31 March 2016, you would be NRI. I am transferring money from my Maldives saving account to my Indian Saving account(NRO). Will it be taxable in India? ...


5

IANAL, I am married to someone in your situation. As a US citizen age 26 who has not had any contact with the IRS, you should most definitely be worried... As a US citizen, you are (and always have been) required to file a US tax return and pay any tax on all income, no matter where earned, and no matter where you reside. There are often (but not always) ...


5

The truth is usually the best reason to give when asked why you want the loan. Expect the credit union to be fairly leery of giving someone an unsecured loan to buy land in a foreign country. A bank in India might be a better bet. If that fails, you might try a Peer to Peer lending site like Lending Club or Prosper if you qualify, though the interest rate ...


5

Per the IRS instructions on filing as Head of Household as a Citizen Living Abroad, if you choose to file only your own taxes, and you qualify for Head of Household without them, the IRS does not consider you married: If you are a U.S. citizen married to a nonresident alien you may qualify to use the head of household tax rates. You are considered ...


5

Is it possible to move money from NRE to NRO account Yes you can move money from NRE to NRO without any issue. You can't do the other way round. i.e. Move money from NRO to NRE. I would like to move USD earning to NRE Yes you can further move money in NRE to NRO account Yes you can I am planning to give NRO account to HDFC Home loan for EMI ...


5

Federal income tax refunds received during 2016 are not taxable income for 2016 (or any other year) on either the Federal or the State tax return. The State income tax refund for 2015 received during 2016 is not taxable income on the State tax return for 2016. It is taxable income on the Federal tax return for 2016 only to the extent that you received a tax ...


5

Whether or not Social Security and Medicare taxes are withheld from your pay, what you need for filing your Federal income tax return are the amounts in Box 1 (Wages, tips,...) and Box 2 (Federal Income Tax Withheld) and these will not change from Form W-2 to Form W-2c. What might happen if you attach Form W-2 is that the IRS will report to the Social ...


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