>
Date: Tue, 16 Jan 2001 10:04:40 -0800 (PST)
X-Mailer: vmh for vim (v0.2) http://www.fleiner.com/vmh/
SL> As far as I know, once you're a permanent resident (or citizen for
SL> that
SL> matter), you pay American taxes on your worldwide income, no matter
SL> where you
SL> live.
True, but once you return AND you don't care about keeping your greencard
you should be able to declare that you are no longer a resident (you lose
your greencard status after one year anyway, also, according to some of the
forms I've seen during the greencard process for my wife you will easely
get another one once you had one, you just need a sponsor (private or
corporate) in the US, but beware: I know of no-one that tried this).
SL>
SL> If you decide to go back to Switzerland, you'll pay the higher of the
SL> two tax
SL> rates (which most likely is the American one). I don't know how the
SL> state taxes
SL> work, I assume, you'll pay federal taxes only.
You only pay federal taxes and can deduct about $72000 plus all taxes you owe
CH, except for the year where you left, where the calculation is different. In
this case you pay some prorated taxes to the state. There are some special
forms for residents living abroad, they (inclduding instructions) can be
downloaded for the IRS site. Note that in order to claim residency abroad
you have to live there for at least n out of 12 month (I think n is 9), but
your n month can be in the future (in case you change your mind and return
earlier you have to pay those taxes later).
Note that this tax problem also applies to all children born here: they will
have to file for US taxes even if they life in CH (and even if the total amount
owed is 0). If they don't they may have real problems once they come to the US
(among other things they cannot sponsor their future spouse/children for a
greencard). Oh, and I know people (US Citizen) that got audited by the IRS in
Switzerland (no kidding, its done via the embassy).
Claudio
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Claudio Fleiner claudio_at_fleiner.com
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Received on Tue Jan 16 2001 - 10:04:45 PST
