Living in Brazil

[Giggity]

Quick question. How are contractors able to go to Iraq and make 250K a year, TAX FREE? I keep hearing about positions in Iraq an Kuwait where you can make obscene amounts of money and not have to pay a penny, when you return at the end of your assisgnment.

I've never asked a contractor who's been in Iraq, nor have I asked a tax specialist, but I'm guessing that the government needs to offer a tax incentive to get contractors into Iraq, since nobody in his right mind is going to work in a place where people are trying to kill him if he has to fork over a third of his income to the government.

[RioFavelaboy]

Quick question. How are contractors able to go to Iraq and make 250K a year, TAX FREE? I keep hearing about positions in Iraq an Kuwait where you can make obscene amounts of money and not have to pay a penny, when you return at the end of your assisgnment.

Lorenzo is totally correct, my buddy is in Iraq doing work for Halaburton, and he says that as long as they stay away from the U.S. for 330 calendar days for a year they will avoid paying and great deal of taxes on that money!

He warned though that this is almost impossible to do because if you have loved ones and family back in the states or other responsibilities to take care of you only have a total of 35 or 36 days to vist or take care business.

Hope you guys get some insight, also he stated that these jobs must be in combat zones or government sponsered contracts.

[Bravo]

Quick question. How are contractors able to go to Iraq and make 250K a year, TAX FREE? I keep hearing about positions in Iraq an Kuwait where you can make obscene amounts of money and not have to pay a penny, when you return at the end of your assisgnment.

[Lorenzo]

It is true that Americans earning money anywhere in the world are subject to IRS taxation regardless of living location. However, Americans are entitled to EXCLUDE from gross income foreign earned income up to $80,000 ($82,400) in a year if such Americans have lived in a foreign location for at least 330 days of such year. In other words, Americans living abroad are not EXEMPT from taxation but are able to EXCLUDE certain income from taxation.

That is what I meant to say. Sorry if I didn't word it correctly. At least you understood my point, unlike the aptly named Meat Loaf.

L

[The Watcher]

This is totally false! Americans earning money anywhere in the world are subject to IRS taxation regardless of living location. The US Dept. of Treasury and IRS are not agencies worth fighting unless you're making some real money, and $80,000 isn't real money. But it does go far in Latin America.

It is true that Americans earning money anywhere in the world are subject to IRS taxation regardless of living location. However, Americans are entitled to EXCLUDE from gross income foreign earned income up to $80,000 ($82,400) in a year if such Americans have lived in a foreign location for at least 330 days of such year. In other words, Americans living abroad are not EXEMPT from taxation but are able to EXCLUDE certain income from taxation.

[Meat Loaf]

Originally Posted by Lorenzo,

Americans living and earning money overseas are exempt from US taxes if their income is less than $80,000.

This is totally false! Americans earning money anywhere in the world are subject to IRS taxation regardless of living location. The US Dept. of Treasury and IRS are not agencies worth fighting unless you're making some real money, and $80,000 isn't real money. But it does go far in Latin America.

[Tavares]

Magic,

I will put you in touch soon with Juliana that will help you out....

[Magic2000]

Magic 2000,

How much are you willing to pay?

Being a tight MF that I am, as little as possible, but my budget is about 350 dollars per week. You got anything? I want something nice however.

Thanks for your help

[Tavares]

Magic 2000,

How much are you willing to pay?

[Magic2000]

I know the chances are slim but does anyone here have a contact who can help me rent a property for 6 months in Joao Pessoa, state of Paraiba beginning on September 2007.

I am looking for a 3 bed apartment.

Appreciate any contact details

Magic 2000

[Douggie Hoser]

Off Road ck your pm please.

Thanks

Bobby Too Timz

[Saeta119]

Americans living and earning money overseas are exempt from US taxes if their income is less than $80,000. However, El Greco's question referred to Brazilian taxes on retirement income from another country, which is taxed at a 27% rate.

L

What about an american living abroad but is earning money from an american company? I'm living overseas but thanks to the internet I can work for my company located in Pennsylvania. What kind of taxes am I looking at?

[El Greco]

Gentlemen for your valuable info that you provided to me.

El Greco

[Lorenzo]

I am not a tax expert but I think that an American living abroad does not pay income tax unless his income exceeds a certain amount (maybe $75,000).

Americans living and earning money overseas are exempt from US taxes if their income is less than $80,000. However, El Greco's question referred to Brazilian taxes on retirement income from another country, which is taxed at a 27% rate.

L

[George90]

George90,

Nothing you said contradicts anything I said, so how is what I said "not quite accurate?" My point was that US residents who participate in the SS system are doubly, perhaps triply, taxed:

L

I guess my understanding of 'double taxation' differs from yours. To me 'double taxation' is what happens to dividends. Corporate profits are taxed at the corporation level once, and after the earnings are distributed to shareholders as dividends they are taxed again at the personal level.

That doesn't happen with SS payments and benefits. A gov't program raises revenue through the FICA tax. Recipients of the SS cash disbursement are taxed on that form of income. The same thing is done with unemployment benefits, and other income support programs.

Paying tax on retirement income to the US gov't and to the Braziian gov't is also a form of double taxation. The US has tax treaties with many countries that eliminates this form of double taxation. I don't know if the US has such a tax treaty with Brazil.