Re:Hit songwriters ask pop stars to stop taking credit for s...
by gcanyon on Wednesday March 31, 2021 @08:07PM
(#26654980)
Expat here, that's not how it works. You have two options when you live/work in another country:
Exclude up to about $100k of your foreign income from US taxes -- after that you still pay US taxes, and at the rate you would have paid if you were paying from the first dollar, meaning if you make $130K, you don't pay US taxes as if you made $30K, you pay the difference between the taxes on $130K and the taxes on $100K.
Deduct whatever you pay in foreign taxes from your US taxes, dollar for dollar.
The US is almost the only country that does this. All of my co-workers from Israel, Ukraine, India, and many other places pay generally no taxes in their home countries.
Exclude up to about $100k of your foreign income from US taxes -- after that you still pay US taxes, and at the rate you would have paid if you were paying from the first dollar, meaning if you make $130K, you don't pay US taxes as if you made $30K, you pay the difference between the taxes on $130K and the taxes on $100K.
Deduct whatever you pay in foreign taxes from your US taxes, dollar for dollar.
The US is almost the only country that does this. All of my co-workers from Israel, Ukraine, India, and many other places pay generally no taxes in their home countries.