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US Citizen living in Romania - Tax Concerns

Discussion in 'Business & Tax Advice' started by The_Architect, Aug 11, 2009.

  1. The_Architect

    The_Architect Newbie

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    I was just wondering where the hell I fall into if I am living in Romania, working for an American company, and required to pay taxes. I really hate this as Romania has a tax system that doesn't draw on income, but expenses. And so I end up paying 22% sales tax as well as a 25% income tax for USA? I do not use anything USA provides. Perhaps I am an exception? I am not sure. I really need advice on paying taxes, as it is my first time dealing with this. I also do not know how to deliver the money for taxes, and if I HAVE to use an American bank account. All my money will be in a Romanian bank account, so what is going to be the deal with it? I have to transfer all the money I set aside for taxes from the Romanian to the American bank account? This is, of course, considering IF I even have to pay taxes, since I am living abroad. Please only answer if you know 100% what you speak of. Thanks! :)
     
  2. hawke

    hawke Power Member

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    Call the IRS, they will tell you if you have to pay taxes or not.

    Here's a couple of sites that might be of use, about paying taxes while living abroad. :)

    Code:
    http://www.irs.gov/faqs/content/0,,id=199953,00.html
    
    http://www.taxmeless.com/page4.html
     
  3. betster77

    betster77 Regular Member

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    Best thing would be to consult with a CPA (Certified Public Accountant) not your Neverblue AM
     
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  4. freqout

    freqout Regular Member

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    This might help:
    "If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to $87,600 of your foreign earnings. In addition, you can exclude or deduct certain foreign housing amounts."

    http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html
     
  5. number101

    number101 Junior Member

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    This is true if you spend 11 out of 12 months outside the US. Your deduction is $87,600.00.

     
  6. The_Architect

    The_Architect Newbie

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    That is a little confusing. But I can deduct that if I earn a little too much money, Uncle Sam wants a cut of it just because I was born in the states. This is regardless of the fact I have absolutely nothing to do with the country anymore (I am raising a child and married here, and plan to stay) except for the fact I work for one of their companies, since Europe is not really so strong in Article Marketing.
     
  7. hawke

    hawke Power Member

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    "Its against the law to give up your U.S. citizenship in order to avoid U.S. taxes"

    "The US has income tax treaties with over 42 other countries. Now, both the IRS and the foreign taxing authorities can exchange information on their citizens living in the other country. Both the Internal Revenue Service and taxing authorities in foreign countries use these treaties regularly to exchange information on their residents living in the other's country. The IRS usually has several agents attached to the U.S. Embassy in each country to assist U.S. Citizens and to search out and report to the IRS citizens who may not be filing their U.S. tax returns."
     
  8. The_Architect

    The_Architect Newbie

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    I am still a US citizen, but that means that if I become a citizen of Romania, I still have to pledge my loyalty to USA, I suppose. I wouldn't go down that path yet, but it seems that my life is tied down on the ground just because I was born in such a place. My mother could not have me in Costa Rica like she wanted because her water broke in Miami, and now I suffer the consequences of that?

    I am deeply sorrowful for any other people married to american citizens abroad. I must get the word out to women to be careful when marrying one of us and staying in their country. I already have screwed it up for my own wife now. This is incredibly shocking that I am stuck with the need to pay income taxes to fund things that won't even benefit me in any way anyhow.
     
  9. andyred

    andyred Junior Member

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    that's romania bro. you don't earn enough so you can pay the taxes. good luck
     
  10. The_Architect

    The_Architect Newbie

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    Wait holy fuck! I just noticed. If I am married (which I am, and will legalize it soon), I get exclusions of an additional $87600. I barely earn $8000 per year :D

    Also, this is interesting:


    OK. This is ACCEPTABLE on my terms. I have no problem keeping up with tax law and will give the IRS a phone call ASAP to discuss other options. Where can I find a CPA - I have no fkn clue. I don't think any CPA lives in Romania which knows how to deal with my particular case lol.
     
  11. The_Architect

    The_Architect Newbie

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    Actually, $500 a month is a hefty amount here, and a semi-high standard of living can be achieved with that little. Since I live in a village, I barely need $200 a month to maintain my good standard of living, since most of the food is free, and property taxes here are almost non-present. :) :) :) :)

    I seriously am overjoyed living with $400 per month, since I can live the same life with $400 per month here as the life I lived in Miami with $4000 per month.
     
  12. keinehabe

    keinehabe Supreme Member

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    who asking you dude here to pay taxes :)? lol .... on this country you didn't realize none pay taxes ? peoples prefer bribes and everyone is happy lol ... how much time are you living here? it's seems you are young if you still '' wish '' to pay taxes lol . wtf do you think becali or patriciu made their money paying taxes :)? and like them are hundreds more lmao
     
  13. betster77

    betster77 Regular Member

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    I hear Romanian girls are hot, how is the girl scene compared to Miami? do the hotties chase after anyone making over 5k a month? lol

    Also, I suggest a US CPA, not one in Romania. contact one close to the border that deals with "maquiladoras" PM me if you need a referral for one, just don't mention any BH stuff
     
  14. mrtornado

    mrtornado Jr. VIP Jr. VIP Premium Member

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    You must be living in Panama :) I'm from Romania and I mange a decent life with $2000 per month, that's having a baby boy and a wife, and you say $200 is enough lol

    But coming back at taxes I never payed a cent in my hole life :)
     
  15. The_Architect

    The_Architect Newbie

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    Well that is you. It depends on what kind of lifestyle you are comfortable with. I barely pay bills or anything for food. I live in a very well sustained village. You must live in the city. I live in Hidiselu de Jos, Bihor.

    Added to that, I do not have the kid yet, and I do not make $200. :)

    I make a slightly higher amount, but I used to make $200 (sometimes even $150) a month and had absolutely no problems here.
     
    Last edited: Aug 11, 2009
  16. The_Architect

    The_Architect Newbie

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    Becali and Patriciu are not American citizens who are chased after by Uncle Sam. I am. Even Al Capone got to jail for not paying taxes, and I think he was in a foreign country when he got caught. Keep in mind that Americans are cattle to their country, not people. Anywhere in the world you are, you are followed.
     
  17. hawke

    hawke Power Member

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    Move to a country without a tax treaty and hope they never get one ;)

    Also, I've heard you can take $2000USD to mexico, and live extremely Comfortable for a year.... ;)
     
  18. The_Architect

    The_Architect Newbie

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    Anyway, about that $87600 cap on exemptions. That means that if I make less than that amount per year, I don't have to pay taxes? That would fuckin rock :p
     
  19. keinehabe

    keinehabe Supreme Member

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    :) ... well good point the bastards aren't us citizens so they are free to do their stuff's right ... tell me dude one thing :) how on the name of god '' uncle sam '' can know even after 200 years how much money do you make ? let's be serious ... I`m respect an honest person lol ... but if you go outside anywhere on this garbage country you will see maybe not more than 10 peoples honest like you which wanna pay taxes damn it , few lines up was one guy who's now it's seems on Paraguay ... what do you think he's so glad hes Romanian and it's running every month at the bank to pay hes taxes for Romanian government right :)? .... My two cent's dude ... even if you are us citizen , how much time you are keeping ur happy lifestyle on Hidislau which is nice .... try to '' forget '' about the taxes , AL Capone was suited and hunted because he was used to sell alchool when prohibition was here not because he didn't paid taxes . And more ... he didn't live on some kind of paradise region like hidislau lol :) he practically owned NY area :)
     
  20. The_Architect

    The_Architect Newbie

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    The problem is that I will never be able to return to see my family again if I ever score bad with the IRS. I have to follow their laws. Romanians are free to do what the hell they want, but I am not born in Romania unfortunately. I wish I were, seeing that I am living much calmer here without watching over my back, except in the case of the IRS.

    Source: en.wikipedia.org/wiki/Al_Capone