Pacun Posted March 25, 2020 Report Posted March 25, 2020 Let's pick a country: Venezuela US citizen works for Oil excavation sociedad anonima, and makes $200K. Does he have to pay federal taxes and SE taxes? Same situation except that he is the single owner of the company? Profits for the company were $200K. Does he have to pay federal taxes and SE taxes? How about if this person has his family in PA, owns a house, has a drivers license and comes to PA to vote whenever there are local, state or federal voting events? Does he have to pay State Taxes to PA? If PA is not a good state, let's switch it to VA, NC or Oregon. Quote
Max W Posted March 25, 2020 Report Posted March 25, 2020 US residents are taxed on worldwide income. For earned income there is a $107,600 exclusion if the taxpayer remains outside the US for 330 day in a 12 month period. The exclusion does not apply to the SE tax. There may also be a housing exclusion/deduction, if qualified. For employees, SS/Med is determined by the tax treaty with each country Under a Totalization Agreement (the US does not have this with Venezuela), where these taxes are only paid to one of the countries involved. Pub 54 is a good reference. As for the 4 states you ask about, they also tax worldwide income and some are very aggressive. They will nail you if there is any kind of nexus to the state. It can be something as innocuous as visiting your doctor, dentist, etc. However, each one may have different rules as to what is considered nexus. The business question I will leave to others. It probably should be posted as a separate question. 2 Quote
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