I probably can claim to have some knowledge in this. On IRS returns, if you have income from foreign sources you have to declare it and if you paid tax to the foreign govt on your income, you declare that too but you get a credit for it. There are special forms for it. There are some countries like Pakistan that have tax treaties with US and these countries do not tax US citizens' income there.
Those who work overseas for US companies have some income like housing, transportation, per diem living expenses, schooling for children etc. that fall under this category, even when their salary gets paid from the home office. Taxation by the foreign country applies to what was earned in that country.
Fortunately for most such workers, the employer provides the tax preparation service.
Dilip
Chan Mahanta <[EMAIL PROTECTED]> wrote:
Chan Mahanta <[EMAIL PROTECTED]> wrote:
> >I think there is no tax on foreign
>income, if they have been already taxed in the foreign country.
Not true Ram. I remember my very first income tax return in this
country being challenged by the California Dept. of Revenue for not
declaring foreign income.
That was when I made $ 2.50 per hour, for five months of the year 1970.
I am not sure exactly how much one pays or on what income, but there
IS indeed tax on foreign income.
Whether one pays taxes on the same income TWICE is the issue in question.
Now if a person is enjoying the privileges of being citizens of two
countries, then it would only be reasonable to pay taxes in both,
wouldn't you think?
What do you think are the chances of that happening however for NRIs
in India, I mean having to pay taxes in India too? This is one of the
most privileged groups of people there is, and includes the scions
of the WHOs WHO of the country. Would they NOT get more privileges
than the 'resident-citizens', the second class folks, like Prof.
Bhagavati speculated? That would be a highly un_Indian thing to
expect, wouldn't you think :-).
c-da
At 3:55 PM -0600 2/24/05, Ram Sarangapani wrote:
>C'da,
>> The only fair thing to do. Citizenship does indeed carry
>> responsibilities, not just the privileges.
>>
>
>I agree, but what about the posssibility of being taxed twice - once
>here and once there? In the US, I think there is no tax on foreign
>income, if they have been already taxed in the foreign country.
>
>I sense, even though, this is only fair that people be taxed, many
>people would not really want a dual citizenship, if that would entail,
>going thru tons of paper work here and then a! gain there. Many in fact,
>are not interested because of the high fees charged for a dual
>citizenship - ie. most are satisfied with the 10-year no hassle visa
>to India. They are not even going for the much touted PIO cards
>(person of Indian origin).
>
>--Ram
>
>
>
>On Thu, 24 Feb 2005 14:47:46 -0600, Chan Mahanta <[EMAIL PROTECTED]>wrote:
>> The only fair thing to do. Citizenship does indeed carry
>> responsibilities, not just the privileges.
>>
>>
>> At 1:43 PM -0600 2/24/05, Ram Sarangapani wrote:
>> >http://timesofindia.indiatimes.com/articleshow/msid-1031385,curpg-2.cms
>> >
>> >For those who are toying with the idea of dual citizenship, this is
>> >something for you.
>> >
>> >--Ram
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