I spent about 4.5 months outside the US this year and someone told me since I was outside the country for such a long period, I could get a larger tax refund. Can anyone confirm this?

Thanks,
Roshan

 

Ideally you wouldn't get any refund, because you would adjust your W-4 accordingly, so as not to give the government an interest free loan for the better part of a year. But that's besides the point.

As for spending time outside the US, I know it has implications for your state income tax, but I'm not sure about federal. For state, you wouldn't owe as much income tax, because those taxes are based on the state in which you do the work you're paid for. If you paid them, even though you weren't working there, then you would probably get some sort of refund. As for the federal income tax, I'm not so sure that it matters where you work.

 

If you pay taxes to a foreign country while you were working outside of the country, those tax might be dedutible.

 

The first 80k you make outside of the US on foreign soil is only subject to the taxes of the host country. After that, you have to start paying US taxes.

My brother lives in Singapore and works for an American firm, he makes like 85-90k.....pays a flat tax of 20% to Singapore...and the rest is all his....he just makes the proper deductions to bring him below that 80k mark. He lives like a King. I need to move out there....

 

That's where I was working. It's beautiful out there. The only downside is a car will cost you about three times what you would pay in the US.

Honda Accord in Singapore is about USD 80k!!

 

Check with the IRS. When I was working overseas if you stayed out for 18 months or longer your income was not taxable. That was a few years ago so it may have changed.

 

Yeah....but your public transport is good and taxis are cheap....just go buy one in China....I hear they have 'special' deals on cars....

My brother works for starcomm media out there....who do you work for?