Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 16.06.2011, 23:44
Newbie
 
Join Date: Jun 2011
Location: Zürich
Posts: 3
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
cpunerd has no particular reputation at present
US Foreign Tax Credit and Cantonal/Municipal Taxes

(I've looked extensively on this forum and through the magic of Google, but alas, I've yet to find an answer to this question. And because it's a tax law, the obvious answer isn't always the right one.)

My quick background: I'm a soon-to-graduate Ph.D. from California and I have an offer to work in Zürich for about 140k CHF per year, plus bonuses.

I'm going to make way more than the US foreign income exclusion (last year it was around $90k USD), so that doesn't seem like the way to go. It seems instead that I'd want to take the foreign tax credit and just use that against my American taxes. With that in mind though, I can't figure out if the municipal/cantonal taxes in Zürich count towards the foreign tax credit. There's a large difference in municipal/cantonal taxes in the different zones in Zürich, so it would make a big difference as to where I would live.

Does anyone know how cantonal/municipal/federal taxes get reported? Is it just one lump sum reported to the US IRS, or is it broken down by Federal, Cantonal, and Municipal? And if it's the latter, am I able to claim anything besides Federal for the Foreign Tax Credit? My next step is to start contacting tax pros in Zürich, but I'm not sure how to even begin that process...
Reply With Quote
  #2  
Old 17.06.2011, 00:02
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,343
Groaned at 296 Times in 244 Posts
Thanked 16,258 Times in 9,027 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: US Foreign Tax Credit and Cantonal/Municipal Taxes

Quote:
View Post
Does anyone know how cantonal/municipal/federal taxes get reported? Is it just one lump sum reported to the US IRS, or is it broken down by Federal, Cantonal, and Municipal? And if it's the latter, am I able to claim anything besides Federal for the Foreign Tax Credit? My next step is to start contacting tax pros in Zürich, but I'm not sure how to even begin that process...
Hi,

They don't get reported, thats your job!
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #3  
Old 20.06.2011, 23:32
Newbie
 
Join Date: Jun 2011
Location: Zürich
Posts: 3
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
cpunerd has no particular reputation at present
Re: US Foreign Tax Credit and Cantonal/Municipal Taxes

Sorry, to clarify, what I mean is that on the annual salary+tax report that one's work gives to its employees, are the cantonal and municipal taxes reported in the same number as with the Federal taxes? For example (I am completely making these numbers up, just as an example), if I made 10.000 CHF, federal tax was 12%, cantonal tax was 4%, and municipal tax was 4%, would the tax breakdown on an annual report look like A or B?

A)
Income: 10.000 CHF
Federal Tax: 1.200 CHF
Cantonal Tax: 400 CHF
Municipal Tax: 400 CHF

B)
Income: 10.000 CHF
Tax: 2.000 CHF
Reply With Quote
Reply

Tags
foreign tax credit, swiss federal tax, tax cantons




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Taxes - Advisors/Accountants / Cantonal Offices / ZH Tax forms / Expat US Taxes Longbyt Finance/banking/taxation 1 15.08.2011 16:48
Why cantonal taxes in SH are higher than in ZCH? pinipon Finance/banking/taxation 21 21.06.2011 16:40
Libraries-Municipal vs. Cantonal nirak Daily life 0 19.01.2011 11:31
Federal and Cantonal Taxes in Zug The Finn Finance/banking/taxation 1 05.03.2010 22:05
cantonal, communal and federal taxes v quellensteur Beano Finance/banking/taxation 1 31.08.2007 13:44


All times are GMT +2. The time now is 15:09.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0