How would be the taxes for the PR working outside US for a US Company

S

sss234

Registered Users (C)
I got a green card a year back. I am going to work in India for 2 years, but I will be in US payroll.

1. What are the tax rates? Is it same or higer or lower
2. Is this period counts for naturalization or not?

Request to post if any one has information on this.

Thanks
 
sss234 said:
I got a green card a year back. I am going to work in India for 2 years, but I will be in US payroll.


Thanks
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If it is from US payroll, then it should be counted as
US domestic income and you most probably should treat it
as if you were in the USA receiving it.
 
JoeF said:
That depends on the country. Even if you get paid in the US, you may need to pay taxes in the country you are working.
The company's HR department should know that.
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But it probably won't make any difference to American IRS.

US payroll will report it on W-2
 
sss234 said:
Thanks, Do we need to pay State taxes? The country I am moving is India.
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My guess would be: if you use re-entry permit, then
you don't have to pay state taxes if you don't have any
residence in any of 50 states. If you don't use
re-entry permit, then you better pay some state taxes to some
state, otherwise it would sound silly if you keep residence
in USA but not in any of its tates or terrotoriesor DC.
 
I am going to apply re entry permit and leave, as we need the reentry permit to enter after one year. Thanks for the suggestions.
 
sss234 said:
I am going to apply re entry permit and leave, as we need the reentry permit to enter after one year. Thanks for the suggestions.
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and your US payroll will withhold federal taxes and state taxes well
and they shiuld know what to withhold.
 
JoeF said:
State taxes for which state? This stuff is more complicated. As I said, there are generally taxes in the country where he works. The company will have to pay that. Their accountants should know this stuff better than anybody here. International tax issues can be fairly complicated. So, the OP should check with his employer.
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his pay may never go thru any intermediate point located in the country in which he will work. The headquaters based in USA will directly deposit
his money to his account in a US based bank.
 
JoeF said:
State taxes for which state?
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Maybe the state where his payroll & human resource
headquarter is based in absence of both a residence
state and an actual work state. I know many states
have treaty with each other that remocve dual taxes
for commuters who work in one state and live in another.
If the original poster has no state to live, then
the state where his HR is located may treat itself
as his 'work" state and collect tax from him.

I just got a publication from IRS that says for Year 2004
we can use general state sale tax as alternative to state
income tax for Schedule A itemized deduction. It has a table
for estimating general state sal etax for each state
adjusting for level of income and number of exemtions.
It is good news for people living in states where income tax
is low but state sale tax is high especially if you also
buy specific item like cars, boats etc.
 
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JoeF said:
Well, but he is not commuting.
And where would he file his state tax return? He can't file in that state, since he isn't living there.
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That depends on that state's law.

JoeF said:
That's something quite different. I assume that has to do with the fact that you are supposed to pay sales tax yourself on items bought out of state. CA has had a tax brochure for that a long time, and last year it also was on the CA state tax return. Yet, basically nobody reported that. Until recently, it wasn't that big of an issue, but with online sales, states lose a lot of sale taxes.
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No it is mainly about sale tax you pay to the state on items you buy
in that state though compensation use tax is also covered

The publication is called Publication 600(2004), Optional State Sale Tax Table

See the links below

http://www.irs.gov/publications/p600/index.html

http://www.irs.gov/publications/p600/index.html



Now Schedule A- Itemized Deduction we have

Line 5 State and local (check only one box)

a [] income taxes or
b [] General sale tax

It is hard for b to exceed a but in some states with high sale taxes
rate and low or zero income tax rate like Florida, people can use
b.

Generat Tax is computed in a table so it is the same for people
with same level of income and number of dependents, but
if one buy some specific item, he can ass taxes onthese specific item
to the table-computed General Sale Tax. So if you buy a Hummer,
you may be better off using Option B
 
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