FAQ: Expat's Guide to US Tax - Page 2

kiwiguy08 · #21 20.01.2012, 07:52

	Quote:	Joy2
	Your tax shelters are limited -- if you use the Swiss pension scheme ("pillars 2 and 3") to reduce your CH taxes, as the Swiss do, the US will tax the money you put in -- and then the Swiss will tax it when you take it out, resulting in double taxation of those CHF's. People in the financial world may have finagled some other way to shelter money (non-qualified deferred compensation plan in the States? I think there are some fancy and advantageous expat contracts out there, but we are local).

Can you please explain how this works. My gross Swiss income is slightly under the FEIE limit. (not taking into account taxes, housing exemptions)

Say for example i earn 50,000 gross, I pay my contributions to AHV, PK, and the employer gives a matching portion of that as well into the system. Does that mean that my actual income in the eyes of the US is 50K+ whatever my employer contributions are?

BrianJW · #22 20.01.2012, 09:59

	Quote:	kiwiguy08
	Can you please explain how this works. My gross Swiss income is slightly under the FEIE limit. (not taking into account taxes, housing exemptions) Say for example i earn 50,000 gross, I pay my contributions to AHV, PK, and the employer gives a matching portion of that as well into the system. Does that mean that my actual income in the eyes of the US is 50K+ whatever my employer contributions are?

If you earn chf 50k gross or even up to whatever 90k usd is in chf (depending on exchange rates) and you don't have major income from investments you will not owe the US govt anything. You still need to file a return but can download turbotax and it's easy step by step.

BrianJW · #23 20.01.2012, 10:14

	Quote:	danb123
	Well in my case I have no 'extra' deductions and I've never been subject to US tax. Keep in mind the US tax is only on the amount above the exemption, not your entire income. Also we are only talking about US federal since you don't have to pay state tax (maybe some expats might who are on a short term work assignment though). I calculate my tax rate every year as a 'flat tax' and my overall rate is about 10% less than what it was in the US. Regards, Dan

The rules vary on this state by state. You need to break residency. It's worth reading the state rules.

kiwiguy08 · #24 20.01.2012, 10:57

	Quote:	BrianJW
	If you earn chf 50k gross or even up to whatever 90k usd is in chf (depending on exchange rates) and you don't have major income from investments you will not owe the US govt anything. You still need to file a return but can download turbotax and it's easy step by step.

So what happens if you are slightly under the tax threshold and your company's contribution to your AHV and Pensionskasse takes you over the threshold?

HollidayG · #25 20.01.2012, 11:03

	Quote:	kiwiguy08
	So what happens if you are slightly under the tax threshold and your company's contribution to your AHV and Pensionskasse takes you over the threshold?

Technically, Pensionskasse counts as income and you should include
it on your return.

kiwiguy08 · #26 20.01.2012, 11:16

	Quote:	HollidayG
	Technically, Pensionskasse counts as income and you should include it on your return.

Thanks! The employers contribution to the AHV does not count as income then.

HollidayG · #27 20.01.2012, 13:16

	Quote:	kiwiguy08
	Thanks! The employers contribution to the AHV does not count as income then.

To be honest, I am not sure, but I do not declare it personally.

There is an American CPA here that specializes in taxes.

Do you want her contact?

kiwiguy08 · #28 20.01.2012, 13:20

Sure, should be beneficial.

SwissMs2000 · #29 10.04.2012, 08:38

I have a question- as an American with 2 children (both are dual US/CH), can I claim the child credits for them or do we need to physically live stateside to claim it?

Kepete17 · #30 10.04.2012, 12:15

yes you can claim it.