Taxing Question

Mr. Hollywood says on May 16, 2005, 07:16:

Right I'm going to preface this by saying I'm not an accountant or a lawyer, so get real professional advice before making a life changing decision.

The rules about paying taxes when overseas are complex but can be summarized this way: If you are out of the USA for 330 out of any 365 day period you're entitled to a $90,000 tax exemption. The qualifier is where you are PHYSICALLY located when you earn the money, not where the company you work for is located or where you're paid. So, feasibly, you could telecommute from Cali and get a really nice tax break. Meanwhile you'd be earning dollars and a US wage. Colombia wouldn't tax you because they wouldn't be at all aware of your earnings, which are paid in the US.

Your only tricky question becomes what kind of visa you live in Colombia on.

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jroger23 says on May 16, 2005, 08:29:

cool Hey I have been searching my ass off for a telecommute job. I also have a lady in Cali but I am currently working and living in Ecuador and believe me....Ecuador Sucks! especially in comparison with Colombia. How did you come across that position? I am in Information Technology field.

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Michael_B says on May 16, 2005, 08:52:

My Visa Since I am married to a Colombian I guess a regular immigration like a request for perm. residency then on to Colombian citizenship. Or maybe since George Bush is in office we can all claim Asylum in Colombia.

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lpdiver says on May 16, 2005, 12:22:

Another option is To form an offshore corporation. Belize is very open to this. Will your employer pay you offshore. The main advantage is the removal of the 330 day out of country requirement.

T

"cook some rice!"

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expatriate says on May 18, 2005, 06:57:

The whole explanation Here is the IRS wording of how taxes are treated for U.S. citizens living abroad - http://www.irs.gov/publications/p54/ch04.html#d0e3767

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