# A Unique Tax Question



## Playboy (Apr 19, 2016)

*Can I have my US company send my salary to Turkey while I live in US and avoid taxation in US?*

I`m a greencard holder and a citizen of Turkey. I work online for a US company. I talked to my boss and he said I may have to fill out W9 to pay taxes in US. But I dont want to pay taxes in US and I want him to send the money directly to Turkey while I live in US.

is it possible? What is your suggestion on this case?


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## accbgb (Sep 23, 2009)

Does this help? https://www.irs.gov/Individuals/International-Taxpayers/Resident-Aliens

Hint: Generally speaking, you do not get the advantages of living and working in the US without contributing to the tax base which is used to support your endeavors.


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## Bevdeforges (Nov 16, 2007)

What you want to do about taxes really has little or nothing to do with it. 

If you are resident in the US, you are subject to US taxes on your pay. Doesn't matter where you are paid, nor in what currency. But I suspect what your employer is asking you to fill out is a W-4 - to establish how many dependents you want to declare for withholding purposes.
Cheers,
Bev


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## Playboy (Apr 19, 2016)

> Does this help?
> Hint: Generally speaking, you do not get the advantages of living and working in the US without contributing to the tax base which is used to support your endeavors.


No it didnt really help because it says you "can" do this and that... it sounds like an option and not what you have to do.



> What you want to do about taxes really has little or nothing to do with it.
> 
> If you are resident in the US, you are subject to US taxes on your pay. Doesn't matter where you are paid, nor in what currency. But I suspect what your employer is asking you to fill out is a W-4 - to establish how many dependents you want to declare for withholding purposes.
> Cheers,
> Bev


There are laws against double taxation. So even though I live in US, I`m not a US citizen and I`m a Turkish citizen. So I`m trying to pay my income tax to Turkey instead of US. I already pay many other taxes (mostly shopping taxes) in US. But the income tax I dont wanna pay it to US


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## accbgb (Sep 23, 2009)

No, what it actually says is that as a resident alien, any income you earn in the US is subject to federal taxation. And, in case you were not aware, the majority of US states also have an income tax, as do many cities. You are subject to all of these taxes, whether you like it or not.

Yes, there are rules (although not "laws" I think) about double taxation. But, what those generally mean is that your country of citizenship will give you a credit for any taxes paid to your country of residence. For example, the US - Italy tax treaty guarantees that any (well, most all) taxes I pay to Italy (my country of residence) will be deducted from any taxes I would otherwise owe the US (my country of citizenship).

The US has a tax treaty with Turkey; you can find it by clicking the "Income Tax Treaty" link on this page https://www.irs.gov/Businesses/International-Businesses/Turkey---Tax-Treaty-Documents

And, note the following paragraph:



> Many of the individual states of the United States tax income which is _sourced _in their states. Therefore, you should consult the tax authorities of the state from which you derive income to find out whether any state tax applies to any of your income. Some states of the United States do not honor the provisions of tax treaties.


which can be found here https://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties---A-to-Z

Do you see that keyword, _sourced?_ That means that income is taxed first where it is earned. And then, in the absence of a treaty that states otherwise, it may also be taxed in your country of citizenship.

You don't have to like it, but that is just the way it is.


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## accbgb (Sep 23, 2009)

By the way, Americans, as a group, do not care for freeloaders. You want to live in our country? Then pay your taxes, just like the rest of us.


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## EVHB (Feb 11, 2008)

You don't want to pay taxes in US but prefer to pay those in Turkey. You are a Turkish citizen, and you work online for a US company. Solution: move to Turkey and keep working for the US company.


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## belgarath (Jul 15, 2011)

Simple and plain : you cannot evade these taxes.

Even if you work for a Turkish employer in Turkey, as a green card holder you are liable for taxes to the IRS on your worldwide income.


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## Bellthorpe (Jun 23, 2013)

When you became a Permanent Resident, you knew what the future tax situation would be. 

One option is to relinquish your Green Card, and return to your home country.


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## BBCWatcher (Dec 28, 2012)

To add to what has already been posted, like every other U.S. person you are also legally required (with criminal penalties available if you fail to comply) to report your non-U.S. financial accounts annually using FinCEN Form 114, IRS Form 8938, and/or IRS Form 3520, as applicable.

I recommend reading IRS Publication 519 ("Tax Guide for Resident Aliens") to understand your tax and financial reporting obligations.

With respect to criminal penalties, the U.S. Supreme Court ruled in 2012 that green card holders can be deported for criminal tax fraud. So the range of criminal penalties available to the U.S. government includes fines, prison time, wage garnishment, asset seizure, and deportation. That is to say you can have your wealth and income seized, your personal freedom denied, and then get booted out of the United States permanently. All of that is _possible_ if you fail to comply with these requirements.


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## Bevdeforges (Nov 16, 2007)

Playboy said:


> There are laws against double taxation. So even though I live in US, I`m not a US citizen and I`m a Turkish citizen. So I`m trying to pay my income tax to Turkey instead of US. I already pay many other taxes (mostly shopping taxes) in US. But the income tax I dont wanna pay it to US


There are TREATIES to mitigate against double taxation. But in overall international "law" and practice, the country you are resident in has first dibs on your worldwide income for tax purposes. And Turkey has never been mentioned, as far as I can tell, as a country that taxes based on citizenship. The US really is about the only country (well, other than Eritrea) that does that.

You are currently resident in the US, therefore you pay US taxes on your worldwide income. As has already been mentioned, if you would "rather" pay tax to Turkey, then you have to move there and work from there. (Oh and be sure to surrender your Green Card on the way out. If you don't you're still subject to US tax filings, though you may be able to shelter at least your earned income from the IRS.)
Cheers,
Bev


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## twostep (Apr 3, 2008)

It is pretty simple! You live and work in the US - you pay tax in the US. You live and work in Turkey - you pay no tax in the US. The choice is yours.


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## BBCWatcher (Dec 28, 2012)

Bevdeforges said:


> The US really is about the only country (well, other than Eritrea) that does that.


And Hungary and (from November 1, 2015) Singapore (MediShield Life).



> As has already been mentioned, if you would "rather" pay tax to Turkey, then you have to move there and work from there. (Oh and be sure to surrender your Green Card on the way out. If you don't you're still subject to US tax filings, though you may be able to shelter at least your earned income from the IRS.)


....And also file IRS Form 8854 if you were a long-term resident (or citizen), as defined in Form 8854's instructions.


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## BBCWatcher (Dec 28, 2012)

twostep said:


> It is pretty simple! You live and work in the US - you pay tax in the US. You live and work in Turkey - you pay no tax in the US.


It's not quite that simple, as Bev explained. U.S. residents (green card holders) are U.S. persons and subject to the same U.S. tax filing and financial reporting requirements no matter where they live in the world. Long-term U.S. residents continue to be subject to those requirements, even if they lose or terminate their green cards, unless and until they file IRS Form 8854.

Whether U.S. persons living overseas actually _owe_ any U.S. tax is a separate question. About 94% of them don't.

Anyway, no, returning to Turkey is not necessarily sufficient to avoid U.S. tax and is certainly not sufficient to avoid U.S. tax return filing and financial reporting requirements.


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