Tax questions: American working in Colombia

dave_travels says on Mar 11, 2006, 14:23:

It depends where your income comes from If you live in a country outside the US, and will be there 365 days or more(there is other criteria also)you are US tax exempt for more than 70K of income earned in that other country. (The amount changes every year.) However if your income is still derived from the USA (even though you live outside the US), then you still have to pay US tax on it. The IRS will send you a large foreign resident package if you ask for it. Your state taxes are generally based on what you declare on your federal return. If you return to live in the USA, you can not elect foreign resident status for tax puposes for another 5 years.

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poco says on Mar 11, 2006, 14:58:

Try this The exclusion is the first $80,000 for federal income tax if you stay and earn money for 330 days out of 365. Watch it!!! If it's not an ENTIRE tax year,, well,, they will get their share of the amount NOT earned that tax year. You still need to pay the SS, medicade part, all of it.

Try this link:
http://www.wwwebtax.com/income/foreign_earnings.htm

The IRS has EXTENSIVE information on this subject but I'm too lazy to look it up and even then it appears to be written in a foreign tongue.

Your employer does NOT need to withhold the federal. Some do no matter what you tell them. I'm in a state that does not require state income taxes,, they get us other ways.

There are foreign employeers that will pay you ALL the money,, do you think an employeer in Spain gives a crap if he electronically transfers pesos to Colombia,, or anywhere?

Yes,, then you can pay NOTHING,,, but if the IRS finds out or HEAVEN FORBID, they call you in and you lie (or have lied on the previous return),, think Martha Stewart,, along with federal income tax evasion, possible jail time, penalities, interest, DAYS wasted,, this goes on,,, I've seen it happen to others. ONE MISTAKE and they got you. Pleading ignorance is not a defense.

Find a tax guy,, who knows,, H&R block?? That understands the current laws.

Disclaimer: Follow any advise and you may find yourself in big trouble.

"When you men get home and face an anti-war protester, look him in the eyes and shake his hand. Then, wink at his girlfriend, because she knows she's dating a pussy." Quote - General Tommy Franks

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c2 says on Mar 14, 2006, 12:50:

Thanks! I appreciate the input. Thank you both. If anyone else has any resources, I'd be happy to look them up.

I tried the accountant listed on EscapeArtist.com but he has not responded. I may try H&R Block. I never thought of them, but they should know something. :-)

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Miguel says on Mar 15, 2006, 10:38:

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