U.S. Taxing ex-pats in Canada

[JustRalph]

http://www.theglobeandmail.com/globe-debate/uncle-sam-is-shaking-me-down/article19301124/


"Uncle Sam is shaking me down..."

[TJDave]

I know dozens of ex-pats living in Mexico who have blissfully ignored the FATCA (Foreign Account Tax Compliance Act). Now the banks are self-reporting. Play time is over.

[Tom]

Anyone who avoids paying taxes is OK in my book.

[Robert Goren]

These are the guys who run to the American Embassy the first time they run afoul the local law. Remember you don't have do anything wrong to be arrested abroad. Being an American is enough. "Renounce or shut up!" That is the message we should be sending these jerks. I am sick and tired of hearing about the plights of Americans who think the USA isn't a good enough place to live. There are hundreds of kids from Central Americans who willing to trade places with them.

[AndyC]

http://www.theglobeandmail.com/globe-debate/uncle-sam-is-shaking-me-down/article19301124/


"Uncle Sam is shaking me down..."

If the person wants to avoid US tax simply renounce their citizenship. I have no sympathy for a person who wants the benefits of citizenship but doesn't want the responsibilities that go with it.

[classhandicapper]

This is stuff gets way too complicated, but this is how I see it.

If you are a US citizen living abroad and are paying all the appropriate income taxes of the country you are living in, you should NOT also have to pay the income taxes of the US.

If you do not have have to pay the income taxes of the country you are living in, then you should have to pay the taxes of the US.

You shouldn't be taxed twice.

If you give up your citizenship, then you should forfeit your entitlement to SS, Medicare etc... but not have to pay any further US taxes under any condition.

If the US keeps trying to double tax people or chase after former citizens that chose to leave and renounce their citizenship, the next option will be for people to operate and do business in cash more often, save in gold and other assets that the government does not know about etc... The idea will be drop your finances off the grid to the best of your ability.

[mostpost]

If you are an American citizen living abroad; you can vote in our Federal elections, you can contribute to political campaigns, you enjoy every protection and privilege that a citizen living in the country does. So pay your US taxes and stop whining.

If you are an American citizen living abroad, their police and fire departments protect you, you drive on their roads, you go to their schools; so STHU and pay the taxes of the country in which you reside.

[mostpost]

I was wondering, "Can an American living abroad deduct his foreign taxes when filing his US taxes?" Here is what I found at Americansabroad.org.
Can I deduct foreign taxes paid?

As a general rule, tax you owe the US on foreign income can be substantially reduced or even zero if you have already been taxed on said income in your country of residence. You can claim these paid taxes either as credits on your Federal return or claim each amount as an itemized deduction. The optimal choice between deduction or credit depends on your country of residence and whether or not this country has a tax treaty with the US as often there are substantial differences between US and foreign tax laws with respect to what the foreign country taxes and what it does not tax. For example, even though some countries do not tax capital gains, these are subject to US tax as are foreign employer contributions to foreign social security and retirement pension funds, as well as both employer and employee contributions to foreign deferred-income plans. Self-employed individuals run a much higher risk of being double taxed and you should contact an international tax professional immediately in this case. For more details see this article: Foreign Tax Credit - the Preferred Anti Double Taxation Tool for American Expats

I am not a tax expert, but it appears that you can.

http://americansabroad.org/issues/taxation/us-taxes-while-living-abroad-faq/

[mostpost]

Anyone who avoids paying taxes is OK in my book.
It's fine with me if you don't pay your taxes. But when that serial killer comes knocking at your door, don't expect us to send the police. When your house catches on fire, the fire department will remain at the station. And when the zombie Apocalypse begins, don't expect help from us when they eat your brain.
If they can find it. :rolleyes:

[Tom]

If the person wants to avoid US tax simply renounce their citizenship. I have no sympathy for a person who wants the benefits of citizenship but doesn't want the responsibilities that go with it.
What responsibilities?
Our government ignores its responsibilities, so we can too.
We allow foreigners to come here illegally and leech our resources. What about them?

Screw it - every man for himself.
That is Obama's legacy.

I want mine. And 47% of yours.

[Tom]

It's fine with me if you don't pay your taxes. But when that serial killer comes knocking at your door, don't expect us to send the police. When your house catches on fire, the fire department will remain at the station. And when the zombie Apocalypse begins, don't expect help from us when they eat your brain.
If they can find it. :rolleyes:

Why not - you do that for anchors?
All I want to do is live by the standards YOU set.

And my brain would feed an army of Zombies.
Probably CURE them.

[AndyC]

A US citizen who pays foreign taxes on income is allowed a tax credit for the amount paid up to the amount that would have been owed to the US. Example: US citizen has $100,000 of income taxed in a foreign country that results in foreign taxes of $15,000. The US citizen files a US tax return on the same income resulting in US tax of $20,000. The US citizen would get a credit against his $20,000 of $15,000 resulting in a net liability to the US of $5,000. If the foreign tax paid was greater than $20,000 the credit would be limited to $20,000.

[johnhannibalsmith]

It's fine with me if you don't pay your taxes. But when that serial killer comes knocking at your door, don't expect us to send the police. When your house catches on fire, the fire department will remain at the station. And when the zombie Apocalypse begins, don't expect help from us when they eat your brain.
If they can find it. :rolleyes:

Good thing you used all the local services paid for primarily with local and state and sales taxes to make the point. I'm hard pressed to come up with similar examples of how everyone benefits from their federal confiscations either.

[DRIVEWAY]

Anyone who avoids paying taxes is OK in my book.

While you pay your taxes, you are OK with others who do not.

Are you willing to pick up the slack for those who don't pay? I don't think so. The deficit, the debt, the interest on the debt are all affecting the value of your assets and your future taxes. Eventually SS and Medicare will be affected.

Think it through. Everyone needs to pay their fair share.

[Clocker]

And my brain would feed an army of Zombies.
Probably CURE them.

You think it could do any good for moonbats? Maybe you could donate it in a living will. :p

[shots]

Just great. Give all the illegals US citizenship and tax them whether they stay or go back to where they came from.

[mostpost]

Good thing you used all the local services paid for primarily with local and state and sales taxes to make the point. I'm hard pressed to come up with similar examples of how everyone benefits from their federal confiscations either.
Tom said, "Anyone who avoids paying taxes is OK in my book" He didn't specify state, local or federal. But if you want examples of federal programs that help the citizens, I have plenty.
Start with Medicare which helps seniors with healthcare. Add Social Security which aids them in achieving a comfortable retirement. Our Armed Forces protect us from external threats. The EPA protects the environment. OSHA makes sure we work in safe factories. The FAA regulates the sky. The FDA makes sure out food and drugs are safe and effective. The SEC monitors and prosecutes securities fraud. The NLRB protects workers.

[Tom]

While you pay your taxes, you are OK with others who do not.

Are you willing to pick up the slack for those who don't pay? I don't think so. The deficit, the debt, the interest on the debt are all affecting the value of your assets and your future taxes. Eventually SS and Medicare will be affected.

Think it through. Everyone needs to pay their fair share.

Slack already being carried.
Why stop there?

No way any of us can do as much damage as Obama and the dums have already down and will continue to do. Screw it - let's ALL go on welfare. Let's ALL stay home from work. Let's ALL demand we be taken care of by Uncle Sugar.

Let's sink this ship.

[johnhannibalsmith]

Tom said, "Anyone who avoids paying taxes is OK in my book" He didn't specify state, local or federal. But if you want examples of federal programs that help the citizens, I have plenty.
Start with Medicare which helps seniors with healthcare. Add Social Security which aids them in achieving a comfortable retirement. Our Armed Forces protect us from external threats. The EPA protects the environment. OSHA makes sure we work in safe factories. The FAA regulates the sky. The FDA makes sure out food and drugs are safe and effective. The SEC monitors and prosecutes securities fraud. The NLRB protects workers.

All of which are not working for the people, but rather operate to varying extremes as PACs to be used as receptacles or outlets for party or ideological influence.

Police and fire legitimately serve the public interest. Your example on that front is well taken. Those acronyms you mention above, excepting the military (the only one in the list that I'm sure you'd loudly campaign to have budgetary reductions and less tax dollars funneled to), have, like all else, continued farther down the road of being patsy enforcement/policy arms of whatever executive is in control.

Few of those things do as you claim. Mostly they help the executive branch promote the party and fundraise through headlines.

[Tom]

Tom said, "Anyone who avoids paying taxes is OK in my book" He didn't specify state, local or federal.

Of course I meant ALL.
And fines, levies, tickets.....why should ANYONE have to pay money to an illegal and rogue government?

Just quit work and show up at your city hall demanding to be fed.
Don't leave - until you get supper.
Come back for breakfast.

Take whatever car you find parked downtown - you are ENTITLED to it.

[johnhannibalsmith]

Oh, and Mosite... don't know what you've been up to or why you've been scarce around these parts recently... but glad you are back for some gratuitous fun with me advocating for satan. :ThmbUp:

[TJDave]

A US citizen who pays foreign taxes on income is allowed a tax credit for the amount paid up to the amount that would have been owed to the US. Example: US citizen has $100,000 of income taxed in a foreign country that results in foreign taxes of $15,000. The US citizen files a US tax return on the same income resulting in US tax of $20,000. The US citizen would get a credit against his $20,000 of $15,000 resulting in a net liability to the US of $5,000. If the foreign tax paid was greater than $20,000 the credit would be limited to $20,000.

Most all foreign income tax is a wash. You are effectively paying the U.S. rate regardless. If you are a full time expat you are allowed 97,600 in income exclusion or tax credits.

The issue in the article seems to be self employment taxes specifically regarding to the ACA. It is my understanding that if you participate in the SS/health care system of your host nation then those dollars are trade outs as well...per negotiated treaty. Canada is one of those participating nations so I question the accuracy of the report.

[tucker6]

Tom said, "Anyone who avoids paying taxes is OK in my book" He didn't specify state, local or federal. But if you want examples of federal programs that help the citizens, I have plenty.
Start with Medicare which helps seniors with healthcare. Add Social Security which aids them in achieving a comfortable retirement. Our Armed Forces protect us from external threats. The EPA protects the environment. OSHA makes sure we work in safe factories. The FAA regulates the sky. The FDA makes sure out food and drugs are safe and effective. The SEC monitors and prosecutes securities fraud. The NLRB protects workers.
Many of the organization examples you cite have been polluted beyond recognition by politics. They do good things, but they also do bad things in the name of the party in power that day. That's not a dem or gop problem. That's an American problem.

[mostpost]

Oh, and Mosite... don't know what you've been up to or why you've been scarce around these parts recently... but glad you are back for some gratuitous fun with me advocating for satan. :ThmbUp:
There hasn't been a lot going here lately as far as I can see. Just a lot of silliness posted by JR and DJ of SD. And who needs good PR more than Satan?

[AndyC]

Most all foreign income tax is a wash. You are effectively paying the U.S. rate regardless. If you are a full time expat you are allowed 97,600 in income exclusion or tax credits.

The issue in the article seems to be self employment taxes specifically regarding to the ACA. It is my understanding that if you participate in the SS/health care system of your host nation then those dollars are trade outs as well...per negotiated treaty. Canada is one of those participating nations so I question the accuracy of the report.

You effectively pay the rate that is the highest, the US rate or the rate for the country where you are living. As for the income exclusion, it is the "earned " income exclusion and there are several hurdles to jump over before you qualify.

I thought the article stated that it was the additional tax on investment income that was in question. There is a medicare surcharge on wages or SE income that exceed certain levels but I didn't see that being mentioned as an issue.

[Robert Goren]

Of course I meant ALL.
And fines, levies, tickets.....why should ANYONE have to pay money to an illegal and rogue government?

Just quit work and show up at your city hall demanding to be fed.
Don't leave - until you get supper.
Come back for breakfast.

Take whatever car you find parked downtown - you are ENTITLED to it.Obama has really gotten to you, hasn't he? Relax, he only has 2 and half years left.

[woodtoo]

Obama has really gotten to you, hasn't he? Relax, he only has 2 and half years left.
Post of the second term :D

[rastajenk]

Many of the organization examples you cite have been polluted beyond recognition by politics. They do good things, but they also do bad things in the name of the party in power that day. That's not a dem or gop problem. That's an American problem.
Hey, I've got an idea: Let's federalize horse racing! :eek:

:faint:

[Tom]

Obama has really gotten to you, hasn't he? Relax, he only has 2 and half years left.

Aren't I quoting the liberal point of view?
Not just Obama- ALL liberals.

[PaceAdvantage]

There hasn't been a lot going here lately as far as I can see. Just a lot of silliness posted by JR and DJ of SD. And who needs good PR more than Satan?Your visibility here is in direct proportion to your ability to refute this administrations negative press. When you pretty much disappear, I know the story has legs....

[tucker6]

Your visibility here is in direct proportion to your ability to refute this administrations negative press. When you pretty much disappear, I know the story has legs....
Haha. I've noticed that as well.

[classhandicapper]

If you are an American citizen living abroad; you can vote in our Federal elections, you can contribute to political campaigns, you enjoy every protection and privilege that a citizen living in the country does. So pay your US taxes and stop whining.

If you are an American citizen living abroad, their police and fire departments protect you, you drive on their roads, you go to their schools; so STHU and pay the taxes of the country in which you reside.

This is nonsense.

You would be paying for twice as many benefits and services as you receive relative to others in a similar income bracket. You should pay your fair share and only your fair share regardless of where you live for personal or business reasons.

[JustRalph]

There hasn't been a lot going here lately as far as I can see. Just a lot of silliness posted by JR and DJ of SD. And who needs good PR more than Satan?

Yep, silliness documenting failings of your hero and your ideology. Every blue state in the nation is broke, people suffering. Not knowing if their pensions are going to be there. Begging for bailouts. Juggling budgets that are complete trickery, the likes of David Copperfield or Houdini managing the money. All the while Red States are succeeding, people are fleeing in droves rushing to Red States.

Detroit looks like Somalia. Illinois is about to put their third governor in a row in prison. Kwame Kilpatrick is walking around in stripes. Rahm is losing his glossy appearance and wondering if he might survive. New York State and city is run by the mob, and Cuomo is a fool floating on the excessive punitive taxes he extricates from the citizens. Jerry Brown puts up a good front and talks out of both sides of his mouth while residential rental trucks head for Texas every single day. Toyota is running away. Fields lay fallow in some of the greatest farmland in the world because California ignored their water crisis for 35 years. Much like New Orleans ignored their flood risk California ironically ignored the lack of water that was predicted for decades.

Yep, I know where the silliness is........look on the map. It's found in blue States.

[JustRalph]

Your visibility here is in direct proportion to your ability to refute this administrations negative press. When you pretty much disappear, I know the story has legs....

Kind of like when he was hiding after CChrome lost.

[Robert Goren]

Companies are created in California and then move to Texas. There is a reason for both.
With a drought that now plagues large parts of Texas, it might be to wise for a Texan, even a transported one, to hammer California about their water problems. California's water problems are now also Phoenix's. Can Texas be far behind?

[JustRalph]

Companies are created in California and then move to Texas. There is a reason for both.
With a drought that now plagues large parts of Texas, it might be to wise for a Texan, even a transported one, to hammer California about their water problems. California's water problems are now also Phoenix's. Can Texas be far behind?

It's been raining like hell all spring here. 4 inches yesterday all over central Texas. I don't worry about the drought. In Texas they'll take action when it gets bad enough. We got a huge body of water to the south......they'll figure it out.

And Texas can afford to pay for it.........

[AndyC]

Companies are created in California and then move to Texas. There is a reason for both.
With a drought that now plagues large parts of Texas, it might be to wise for a Texan, even a transported one, to hammer California about their water problems. California's water problems are now also Phoenix's. Can Texas be far behind?

The proud residents of CA are much more concerned about the Delta Smelt than providing water to the people that live and work there.