Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
 
Thread Tools Display Modes
Prev Previous Post   Next Post Next
  #1  
Old 10.11.2016, 20:16
Newbie
 
Join Date: Nov 2016
Location: USA
Posts: 9
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 1 Post
paulptli has no particular reputation at present
US tax returns

Hey, I went through a number of useful discussion here on the forum, and wanted to confirm my understanding of the US taxation on my Swiss income before negotiating my salary:

Basically, I'd have 2 options (assume exchange rate = 1):

1) Claim foreign tax credit on the Swiss taxes I've paid: e.g. I owe IRS X$, paid to Switzerland Y CHF, hence will pay to IRS $X - YCHF, or
2) I claim income and housing deductions: e.g. if my salary is G CHF, then I can subtract $D = $100K + (my rent in Zurich) , and pay to IRS taxes on G - D (with the original tax bracket for exchange rate * G).

Given much lower tax rates in Switzerland, (2) should be a much better option, unless the salary number is ridiculously high. However, to use (2) I'd pretty much have to live in CH for a year, and won't be able to use during my 1st year here. Presumably I can still go with (1) for the year, when I get the salary both in US and CH. Also, I will be eligible for 6 months tax return extention from IRS to somewhat mitigate the higher effective tax rate for the moving year.

Does it sound right?
Reply With Quote
 

Tags
us tax




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
tax accountant/advisor for Swiss and U.S. tax returns rowayton1999 Finance/banking/taxation 2 16.07.2013 11:09
Filing backed US tax returns American_Girl Finance/banking/taxation 7 08.05.2012 08:57
US Tax returns 3012 - IRS allows more time to file a return jrspet General off-topic 1 16.04.2012 23:47
Tax Returns vs Tax at Source & Redundancy... p42 Employment 19 20.01.2012 21:07
Tax form numbers for US tax returns colors General off-topic 1 16.10.2006 02:53


All times are GMT +2. The time now is 15:12.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0