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American citizen but living abroad, stil have to fill in w9?

Discussion in 'Business & Tax Advice' started by cheesecake, May 11, 2009.

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  1. cheesecake

    cheesecake Regular Member

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    Well.. as the title says..

    I cannot find this information anywhere..

    I do not live in the US, nor have I even set foot in the US for about 10 years now.

    Do I still have to send a W9 when CPA companies payout?

    I read somewhere that if you live abroad you can make something like 40k a year and not pay taxes but I'm not sure where.

    I don't have a physical address in the US or a company under my name established in the US.

    W9 forms say something like "US resident", which I am not. Or I could be mistaken.


    any pointers?
     
  2. thowell

    thowell Newbie Premium Member

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    If you are an American citizen, you are still required to pay taxes on income earned anywhere in the world. They allow you to exempt up to $70k of earned income from overseas. I believe the US-based CPA companies will require either a W-9 for US citizens or resident aliens, or a W-8 for foreigners.
     
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  3. cheesecake

    cheesecake Regular Member

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    thanks man.. I always wondered what to do with this...
     
  4. elchichita

    elchichita Newbie

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    That is if you live in the US, but it is not the case if you live overseas....You still have to report your overseas income to the US if you live overseas. Also, you pay taxes to the US for any amount above $80,000 that you get of US income (not the overseas income)
     
  5. cheesecake

    cheesecake Regular Member

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    So if I understand correctly, I have to report income AND pay taxes for any income if US based business and pay taxes if over 80k if the income is from an overseas business?
     
    Last edited: May 13, 2009
  6. TermsB

    TermsB Senior Member

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    Touche crafty Asians. :D
     
  7. number101

    number101 Junior Member

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    Great insight kanzeon. I was not aware that one could legitimately purchase a passport from a different country.

    For clarity purposes, the facts which are highlighted in red are backwards. The tax code states that as an American citizen you must reside outside of the U.S. 330 days or more, allowing you no more than 35 days to be within the U.S., in order to qualify for the $80K tax exemption.
     
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    Last edited: May 28, 2009
  8. cheesecake

    cheesecake Regular Member

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    thanks for the clarification number101. I still have to declare this right? I know, I should get an accountant, but you guys are helping a lot :)
     
  9. number101

    number101 Junior Member

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    Occupation:
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    Correct. It is my understanding that you do need to report all earnings.


    Number 101
     
  10. number101

    number101 Junior Member

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    Occupation:
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    Thanks for the follow up info. Very helpful for me.

    101
     
  11. miamipoker

    miamipoker Newbie

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    You could open up and offshore corp. Do you a search for "tax Haven" or "offer Shore Corporation" on google. The best way is a open a panamanian foundaton with nominie directors and then have it open gautamalan Corporation and bank account. You can then have all you funds sent there and get a debit card to withdraw the funds at ATMs.
     
  12. Freddie

    Freddie Registered Member

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    AFAIK if the foreign passport lists an American sounding name and a US place of birth you will STILL be grassed.
    Have a look around regarding the "qualified intermediary" program for banks.


    That must make 3 countries then because (AFAIK) the Philippines do the same (US IRS helped set up their tax system (or so the story goes))

    No clearer statement possible that they consider you to be their slave.

    Canada also will try to tax Canadians regardless of residency unless they can prove that they are resident for tax purposes in a country Canada has an agreement with.

    That one can be legally side-stepped so that the overall tax bill is near zero. It is a matter of organizing residency in the right country.

    Still having a Canadian drivers license seems to be already enough to still be deemed resident for tax purposes in Canada if you are Canadian.
     
    Last edited: Jun 18, 2009
  13. Freddie

    Freddie Registered Member

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    ....and be prepared for a lot of semi-correct and incorrect information as well as outdated stuff, scams and lies. You MAY also find some good info but be VERY careful when researching this topic.

    IF you are a US citizen do NOT ask your US based accountant for advice on this kind of stuff. They are by law required to report your suspicious activity to the government. In other words they are legally obliged to RAT on you. Given the US entrapment culture they would be stupid if they don't.
     
  14. asoduk

    asoduk Registered Member

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    you really need to talk to a tax professional (lawyer) about this, and get a 2nd and 3rd opinion. the only people that get off easy on this stuff are celebrities that can claim to be foreign (Helio Castronevez) and, recently, government officials.
    In my area there was a big bust on people with offshores. They all went to federal prison for at least 6 months. Low security, but I still wouldn't want to go.
    bottom line is that you have to file and at least be MOSTLY true if you don't want to live in a place where hardback books can be considered a dangerous weapon just to save some money.
    if you need to legitimize it, think about it as paying for your security while abroad and ensuring that you will be able to return to a safe and free country when you return.
     
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