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Old 07.06.2015, 14:13
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Reduce USA Tax Burden

Hi everyone!

As everyone knows we US citizens still need to pay tax back to uncle sam each year. Does anyone have any good tips on reducing taxable income in this situation? Ideally I'd love to reduce my taxable income to 0 in the eyes of the IRS.

Thanks!
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Old 07.06.2015, 15:06
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Re: Reduce USA Tax Burden

We have determined that there are only two options:

1. Give up the blue passport.

2. Move back to the US to get rid of all the overseas taxpayer complications.

The first is not an option as we will never be granted Swiss citizenship and we don't have any other.

So it's the second.



Not a very helpful answer, but if you are in a tax bracket where you are concerned about your liabilities to both Uncle Sam and Helvetia, your best bet is to speak to a professional for qualified dual CH/US tax planning advice tailored to your individual situation.
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Old 07.06.2015, 16:40
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Re: Reduce USA Tax Burden

i think.. (could be wrong) .. if your income is about or less than $100K, you might be able to pay only CH tax by applying tax exclusion. As long as you have permit to live and work in CH, you can prove your bona fide resident status without meeting 330-days physical test.

if you are married, maybe the threshold is higher to get exclusion but you can check this at IRS.GOV
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Old 07.06.2015, 16:44
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Re: Reduce USA Tax Burden

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i think.. (could be wrong) .. if your income is about or less than $100K, you might be able to pay only CH tax by applying tax exclusion. As long as you have permit to live and work in CH, you can prove your bona fide resident status without meeting 330-days physical test.

if you are married, maybe the threshold is higher to get exclusion but you can check this at IRS.GOV
Earn below the exemption & be happy
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Old 07.06.2015, 16:55
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Re: Reduce USA Tax Burden

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Earn below the exemption & be happy
I thought it was impossible to live in Switzerland on less than 120K
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Old 07.06.2015, 20:54
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Re: Reduce USA Tax Burden

If you haven't already and can manage, open an IRA and pay the max annual amount. This will reduce your taxable income. I opened an IRA at TD Ameritrade and so far the stock market has been pretty good the last coupla years.

It really sucks, that when you optimize your Swiss taxes, because of it you get the double whammy effect from Uncle Sam.

For those who do not have to pay uncle sam, it may be worth it to open a Roth IRA, which is already taxed.

Hope a change in legistlation will take place soon - its f-in unfair!

Good luck!
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Old 07.06.2015, 21:51
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Re: Reduce USA Tax Burden

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i think.. (could be wrong) .. if your income is about or less than $100K, you might be able to pay only CH tax by applying tax exclusion.
More, as there is also the housing exclusion.

Tom
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