USA\Singapore tax

[zzman]

Folks

i have a question and hoping you all can give me some advise. I am US citizen and therefore i have the priviledge to pay full US tax even though i live here.

I am just planning to move to local package, meaning i will be responsible for taxes (rather than my company).

does anyone have good documents on what i should expect from tax purpose?

does US give any credit for tax paid in singapore or am i paying full taxes in both countries..?

[revhappy]

Folks

i have a question and hoping you all can give me some advise. I am US citizen and therefore i have the priviledge to pay full US tax even though i live here.

I am just planning to move to local package, meaning i will be responsible for taxes (rather than my company).

does anyone have good documents on what i should expect from tax purpose?

does US give any credit for tax paid in singapore or am i paying full taxes in both countries..?

I like the way you call it a priviledge

[Strong Eagle]

You will get an earned income exclusion of US$92,500 for 2011, and US$95,100 for 2012. All earned income above this amount as well as all passive income (rents, dividends, etc) are taxed at the rate as though the earned income were not excluded.

If addition, if you reach qualifying amounts, ie, you earn more than the earned income exclusion amount, you will be able to claim a limited amount of tax credits for Singapore tax paid.

You may also claim a housing allowance exclusion... you should explore that company providing you with a housing allowance as part of your package as that can be excluded from earned income as well.

So, you don't pay full taxes. Even Turbotax handles earned income exclusions.

[zzman]

do i get to claim housing allowance deduction if i am paying rent on my own (vs. company allowance)?

net net, woudl i end up paying more taxes than i would if i was in US?
i assume the tax credit etc helps to at the very least keep things same or am i mistaken?

[zzm9980]

From what PwC told me (which contradicts some of the things I've read on the Internet, and I'm not quite sure who is more credible), the house allowance raises your earned income exclusion if you qualify for it.

[Strong Eagle]

do i get to claim housing allowance deduction if i am paying rent on my own (vs. company allowance)?

No.

[Strong Eagle]

From what PwC told me (which contradicts some of the things I've read on the Internet, and I'm not quite sure who is more credible), the house allowance raises your earned income exclusion if you qualify for it.

It doesn't raise your earned income exclusion, it is a separate exclusion, assuming that your company is paying you a housing allowance in addition to salary.

[Rubby]

so if I earn less than $95k in singapore I will not pay any US income tax on that?

[Strong Eagle]

so if I earn less than $95k in singapore I will not pay any US income tax on that?

That is correct. You will pay Singapore income tax on that amount, and you will still pay US tax on any unearned income... rents, royalties, dividends, interest.

[Rubby]

Thanks for the reply. That's good news.

I'm not in any danger of breaking that $95k mark with a university salary. I might have to start looking for another job once I'm there if money seems tight.

If anybody here knows of anybody in the energy or minerals sectors looking for a Geologist, please post a reply. Also, my girlfriend is a Japanese citizen and works in sales for an oilfield & steel supplier/importer. She is looking for a position in Singapore.

Thanks again.

[maneo]

IRS provides all sorts of info online:

http://www.irs.gov/businesses/small/int ... 24,00.html
You may qualify for the Foreign Earned Income when you have been abroad long enough. There are 2 tests for eligibility:

1) Bona Fide Residence Test
2) Physical Presence Test

You may submit for extensions to file until you reach your eligibility.

Even if you earn less than the exclusion amount you may still be liable for tax on the portion attributable (prorated) to time spent working in the US (e.g. business trips).

Download & read Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

http://www.irs.gov/publications/p54/index.html
http://www.irs.gov/businesses/article/0 ... 63,00.html