Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 04.05.2019, 10:49
Newbie 1st class
 
Join Date: Feb 2016
Location: Basel
Posts: 22
Groaned at 2 Times in 2 Posts
Thanked 3 Times in 3 Posts
Gregbert has become a little unpopularGregbert has become a little unpopular
Double taxation on US Income

Hello everyone,

I am a US Citizen living in Baselland

I realize I take a foreign tax credit against income that is related to my swiss employment

However, switzerland also charges me taxes on income outside of the country. e.g., renting out my house in the US, interest from US bank accounts.

And of course, the US includes this in my income as well and taxes me on it.

I am realizing that i cannot deduct taxes paid to Switzerland from my US taxes on income unrelated to swiss sources (e.g. investment income). Therefore, I am subject to double taxation on that non-swiss income.


e.g.,

100k swiss employment income
100k ex-swiss investment income
total income = 200k. taxes paid, lets say 50k

but when i file my US taxes, I have 200k income, but can only claim the Foreign tax credit against the 100k of foreign income.. so approx ~half of that $50k ends up being credited, and the remaining $25k of tax goes into carryover.
Am I thinking about this correctly?

Thank you for your thoughts or confirmations.

edit: trying to clarify the complex language to make it easier to understand... best i can do.
Reply With Quote
  #2  
Old 04.05.2019, 11:21
robBob's Avatar
Forum Veteran
 
Join Date: Mar 2012
Location: Zurich
Posts: 1,794
Groaned at 32 Times in 20 Posts
Thanked 1,394 Times in 803 Posts
robBob has an excellent reputationrobBob has an excellent reputationrobBob has an excellent reputationrobBob has an excellent reputation
Re: Double taxation on US Income

Is the 100K including Pension (your & employer contributions)?
If so with foreign earned income allowance, you will pay no US tax on Swiss income.


https://www.americansabroad.org/us-t...ummies-update/
Reply With Quote
  #3  
Old 04.05.2019, 11:57
Forum Veteran
 
Join Date: Dec 2012
Location: Aargau
Posts: 2,118
Groaned at 11 Times in 10 Posts
Thanked 2,685 Times in 1,245 Posts
Mullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond reputeMullhollander has a reputation beyond repute
Re: Double taxation on US Income

For US dividend and interest income on which US taxes are due, you should consider filing a DA-1. This can allow up to 15% of the dividend and interest income to refunded. More information is at this link (German):

https://www.baselland.ch/politik-und...st/antrag-da-1
Reply With Quote
Reply




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
Double taxation on my salary (wife works for WHO) BMF Finance/banking/taxation 4 01.04.2019 09:20
Double taxation US/Swiss george77 Finance/banking/taxation 9 09.03.2016 15:50
Double taxation on assets in other EU countries HannoA Finance/banking/taxation 0 15.05.2015 00:14
Need clarifications on double taxation sud_1983 Finance/banking/taxation 1 31.07.2014 08:22
revised double taxation agreement with the US dino Finance/banking/taxation 8 12.07.2009 22:09


All times are GMT +2. The time now is 14:26.


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