View Single Post
  #5  
Old 02.09.2008, 15:46
HollidayG's Avatar
HollidayG HollidayG is offline
Forum Legend
 
Join Date: Jan 2008
Location: Baar
Posts: 2,655
Groaned at 44 Times in 30 Posts
Thanked 949 Times in 588 Posts
HollidayG has a reputation beyond reputeHollidayG has a reputation beyond reputeHollidayG has a reputation beyond reputeHollidayG has a reputation beyond repute
Re: Tax implications for local and expat contracts

Quote:
View Post
If you are a US citizen or a permanent resident you must file US tax returns each year. You can delay the filing until June 15 of 2009 for 2008 taxes but must pay any taxes owed by April 15 2009. If you have been out of the country for a full year both you and your wife can claim an exemption on the first $87,000 you each earn and a dollar for dollar credit for all the taxes paid in Switzerland. If you have been out for a lesser amount of time, the $87K is prorated.

So if you have "normal" Swiss salaries, it is unlikely you will owe the US Federal government anything. The State government might be a different story. if your state has a tax, then you need to be very careful that you have established you have left otherwise they can and will tax you and there is no credit for foreign taxes paid (only for Federal taxes which likely you do not owe).. The rules on residency are complicated but in my State (California), they will deem you to be resident if you show an intention to come back (e.g. maintain a house in the State or a car etc.). It needs careful planning and probably a tax advisor to sort out the rules and avoid a nasty surprise.

Good luck.
You can file a tax return extension which will allow you to extend the June
15, 2008 deadline until October 15.
Reply With Quote