Does anyone have any experience with what the US tax implications are for a couple who, one is on a local swiss contract and the other who is on a US expat package? I'm sure both incomes need to be declared in the US, but are there any exceptions? What are the tax bracket amounts?

Appreciate anyone who can help

Disclaimer: I am not a tax accountant, nor do I play one on TV.

If you are both US citizens or resident aliens, your income is taxable in the US regardless of where or how it is earned (expat vs. local contract). From what I have been told as I work on my US taxes is the the first 85,000 USD you earn outside the US are not subject to US taxes, everything above that is taxable.

Again, you should probably work with a tax accountant to make sure you don't over/under pay.

Good luck!

I can confirm the first statement, agree with the second, and second the third.

My experience , from a tax perspective it is a very bad.....but depends on the structure of the expat package and how your company deals with the taxes etc.. But essentially the local income can get pushed into a high tax bracket due to alot of factors related to the contract.

Thanks all for the advice, I think the best thing for me to do is consult a tax adviser.

Hi there.
Unfortunately, you have to pay taxes in the US. The
good news is that you can do one of two things:

You can either:

1. Exclude 84700 from your income
Or
2. Take taxes here as credits on your US return

I am an accountant working towards CPA.

Cheers,
Grant