Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 25.02.2018, 02:26
Newbie 1st class
 
Join Date: May 2017
Location: Zurich
Posts: 14
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 3 Posts
tallharish has no particular reputation at present
4 month internship in Zurich, US tax resident

Hi Everyone

I live in the US as a student (F-1 visa), Indian citizen (if that helps). I worked at IBM Research in Zurich for a 4 month summer internship in 2017. My taxes were deducted at source at IBM (i have the paystubs). I also paid health insurance myself.

I was not allowed to open a bank account in Swiss (due to laws between US and Swiss for short-term stay) and my salary was remitted to my US bank account directly.

So far I understand that we need to file form 2555 along with 1040. And we need to declare my foreign income on 1040, and claim deductions for taxes paid in swiss. From the f2555 description, it seems I won't be a "bona fide resident" of swiss, since my employment was temporary with intention of coming back.

Any tips from experienced folks?
Reply With Quote
  #2  
Old 25.02.2018, 16:19
3Wishes's Avatar
Moderately Amused
 
Join Date: Jul 2010
Location: Bern area
Posts: 9,115
Groaned at 50 Times in 48 Posts
Thanked 14,088 Times in 6,523 Posts
3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute
Re: 4 month internship in Zurich, US tax resident

From what I understand, if you were only here 4 months then you don't qualify to file form 2555 because you don't meet either the bona fide residence test or the physical presence test.

You'll file 1040 as you said, and then form 1116 to get either a credit or deduction for the tax paid to Switzerland.
Reply With Quote
  #3  
Old 19.03.2018, 02:03
Newbie 1st class
 
Join Date: May 2017
Location: Zurich
Posts: 14
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 3 Posts
tallharish has no particular reputation at present
Re: 4 month internship in Zurich, US tax resident

Thanks 3Wishes. I was able to follow the form 1116 quite easily, using which I got a nice deduction on Fed taxes owed. But I am not sure if I can claim foreign tax credit on taxes to the state (NC in my case). Looks like I owe quite a tax to the state now .

Thanks

Last edited by tallharish; 19.03.2018 at 02:07. Reason: Forgot earlier.
Reply With Quote
  #4  
Old 19.03.2018, 14:44
3Wishes's Avatar
Moderately Amused
 
Join Date: Jul 2010
Location: Bern area
Posts: 9,115
Groaned at 50 Times in 48 Posts
Thanked 14,088 Times in 6,523 Posts
3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute
Re: 4 month internship in Zurich, US tax resident

Quote:
View Post
Thanks 3Wishes. I was able to follow the form 1116 quite easily, using which I got a nice deduction on Fed taxes owed. But I am not sure if I can claim foreign tax credit on taxes to the state (NC in my case). Looks like I owe quite a tax to the state now .

Thanks
First hit on Google, searching for "foreign tax credit north carolina":
http://christopherbyrne.com/foreign-...orth-carolina/

Googling for the form mentioned in that site gives this:
https://www.ncdor.gov/documents/2017...me-tax-credits
Reply With Quote
This user would like to thank 3Wishes for this useful post:
  #5  
Old 19.03.2018, 15:05
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 10,136
Groaned at 78 Times in 69 Posts
Thanked 15,292 Times in 6,801 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: 4 month internship in Zurich, US tax resident

Quote:
View Post
Indian citizen (if that helps).
It explains why you constantly write Swiss (the adjective, like Indian, Pakistani) instead Switzerland (the noun, like India, Pakistan).

I just do not understand, why this is the case with you folks. Could you explain?

Hope, the information by 3wishes helps with your tax situation.
Reply With Quote
The following 2 users would like to thank aSwissInTheUS for this useful post:
  #6  
Old 20.03.2018, 01:04
Newbie 1st class
 
Join Date: May 2017
Location: Zurich
Posts: 14
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 3 Posts
tallharish has no particular reputation at present
Thanks @3Wishes. Wow I missed the keywords. That might save $1k or so for me! I will call the NC tax folks this week and post my reply here.

@aSwissInTheUS: I apologize if that offended you in any way. I am well aware of this. I have seen the word "swiss" being used sloppily in this forum, and I fell for it.

Just in case you aren't aware, most folks from the Indian subcontinent whom you would come across in the western world have studied English since Kindergarten (compare that with most of continental Europe). Thus, we are native English speakers. I have studied in top schools in the US, and I would say people of Indian origin speak grammatically better English "on an average" than Americans.

Feel free to poke folks for their English mistakes, but please don't generalize it to their country of origin.

On a light note, I wish there was a popular short form for Switzerland, like SWZ or something (just like DE for Germany), that could save typing a few characters and would still be grammatically correct . Switzerland isn't the easiest country name to spell after all.

Last edited by 3Wishes; 20.03.2018 at 14:14. Reason: merging consecutive replies
Reply With Quote
  #7  
Old 20.03.2018, 07:17
Forum Legend
 
Join Date: Feb 2010
Location: CH
Posts: 7,932
Groaned at 257 Times in 208 Posts
Thanked 10,045 Times in 5,383 Posts
greenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond repute
Re: 4 month internship in Zurich, US tax resident

Quote:
View Post
@aSwissInTheUS: I apologize if that offended you in any way. I am well aware of this. I have seen the word "swiss" being used sloppily in this forum, and I fell for it.

Just in case you aren't aware, most folks from the Indian subcontinent whom you would come across in the western world have studied English since Kindergarten (compare that with most of continental Europe). Thus, we are native English speakers. I have studied in top schools in the US, and I would say people of Indian origin speak grammatically better English "on an average" than Americans.

Feel free to poke folks for their English mistakes, but please don't generalize it to their country of origin.
And yet, with all your English and everything (or despite of), you do make mistakes on a different level - manners, cultural sensitivity.
That some people are ignorant it is not a good reason to keep making the same confusion (unless you do think you're "funny" and this is the only kind of humour you know) - in Swiss this, to Swiss that. It is offending. The country is Switzerland and its people like to be referred to as Swiss. Simples.

If I'll meet you I'll keep referring to you as Pakistani, just to piss the hell out of you. :-) Yep, I learned that on EF too. I fell for it.

That being said, welcome to EF and enjoy your future stay in Switzerland! :-)
Reply With Quote
  #8  
Old 20.03.2018, 07:21
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 10,136
Groaned at 78 Times in 69 Posts
Thanked 15,292 Times in 6,801 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: 4 month internship in Zurich, US tax resident

Hi tallharish, I an not offended
It is just an observation that if some one says Swiss instead Switzerland the chances are really high that the person is from India.

If you are looking for a short form like DE, that would be CH. Which means Confœderatio Helvetica (speaking about not easy to spell )
Reply With Quote
The following 2 users would like to thank aSwissInTheUS for this useful post:
  #9  
Old 20.03.2018, 08:07
Forum Legend
 
Join Date: Feb 2010
Location: CH
Posts: 7,932
Groaned at 257 Times in 208 Posts
Thanked 10,045 Times in 5,383 Posts
greenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond repute
Re: 4 month internship in Zurich, US tax resident

Quote:
View Post
Hi tallharish, I an not offended
It is just an observation that if some one says Swiss instead Switzerland the chances are really high that the person is from India.
.....not only. I noticed it's a very common mistake, regardless of origins. Probably you think so because there're like...you know, more of them. :-)
Reply With Quote
  #10  
Old 20.03.2018, 09:34
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 10,136
Groaned at 78 Times in 69 Posts
Thanked 15,292 Times in 6,801 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: 4 month internship in Zurich, US tax resident

Quote:
View Post
.....not only. I noticed it's a very common mistake, regardless of origins. Probably you think so because there're like...you know, more of them. :-)
Maybe. Or just an observation bias. Or that Indian people are more truthful and honest when they fill in the profile. Others which do not state the nationality, and uses Swiss instead of Switzerland will drop out of the statistic.
Reply With Quote
This user would like to thank aSwissInTheUS for this useful post:
  #11  
Old 20.03.2018, 09:55
Forum Legend
 
Join Date: Feb 2010
Location: CH
Posts: 7,932
Groaned at 257 Times in 208 Posts
Thanked 10,045 Times in 5,383 Posts
greenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond reputegreenmount has a reputation beyond repute
Re: 4 month internship in Zurich, US tax resident

Quote:
View Post
Maybe. Or just an observation bias. Or that Indian people are more truthful and honest when they fill in the profile. Others which do not state the nationality, and uses Swiss instead of Switzerland will drop out of the statistic.
Or maybe they care more about that profile thing, not knowing it will be used against them with the first occasion....hehehe
Lol, do you always check EFers profiles? So...systematic, so Swiss. Usually you can get that either from what people themselves specify in their posts, or from the context, if it's really relevant for the subject. Back to the topic, it's a frequent mistake that it's rather irritating for folks who live here, also very noticeable on this forum..(imho) Indian or whoever else...
Reply With Quote
  #12  
Old 20.03.2018, 18:18
Newbie 1st class
 
Join Date: May 2017
Location: Zurich
Posts: 14
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 3 Posts
tallharish has no particular reputation at present
Re: 4 month internship in Zurich, US tax resident

@greenmount, @aSwissInTheUS: point well taken. Thanks for bringing this up. I had forgotten CH. I had a great experience visiting last year and would love to visit again in the future.
Reply With Quote
  #13  
Old 20.03.2018, 18:51
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 26,572
Groaned at 1,642 Times in 1,262 Posts
Thanked 30,788 Times in 14,708 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: 4 month internship in Zurich, US tax resident

Quote:
View Post
I wish there was a popular short form for Switzerland, like SWZ or something (just like DE for Germany), that could save typing a few characters and would still be grammatically correct .
CH = Switzerland.

D = Germany.

Tom
Reply With Quote
Reply

Tags
internship, taxes, usa




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
US Tax on AHV as a Swiss resident UncleTell Finance/banking/taxation 8 17.05.2016 11:12
US Tax on 2nd pillar as a Swiss resident UncleTell Finance/banking/taxation 2 10.05.2016 14:48
US tax refunds for internship on J-1 visa Rustygraben Finance/banking/taxation 0 17.03.2014 13:35
Take summer internship in the US a swiss resident patapple Permits/visas/government 3 08.11.2013 17:32
Tax on EU/US resident leabarry Finance/banking/taxation 7 11.08.2009 23:01


All times are GMT +2. The time now is 23:19.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0