# US Citizen: Tax implications for working in multiple countries



## snowbound (Jan 22, 2015)

What are the tax implication for a US citizen working in multiple countries through out the year. Would be in the US for less than 3 weeks a year.

I would not be 330 days in any particular country but would be more than 330 days outside of the US.

Let say if I work 4 months in Hong Kong and 7 months in Singapore. 

Would I qualify for foreign exclusion for either income or both? Would there be an exclusion formula?


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## makaloco (Mar 26, 2009)

Here's what the IRS says:
Foreign Earned Income Exclusion - Physical Presence Test


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## snowbound (Jan 22, 2015)

Yes, I have already read through that....just wanted input and clarification on actual tax filing, especially how working in different countries will impact the calculations.

I am going to make substantially more at one country vs another country.


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## Bevdeforges (Nov 16, 2007)

Basically, for the physical presence test you only need to be outside the US for the requisite 330 days in a 12 month period. Doesn't matter if it's one or multiple countries.

What does get tricky, though, is determining your "tax residence." For some countries, you may be considered tax resident there if you spent more time there than anywhere else during the tax year. Or, where you maintain your main "centers of interest."
Cheers,
Bev


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## snowbound (Jan 22, 2015)

OK that helps.

Sounds like income tax is easy to get exemption...how about payroll/employment tax?

For example, if you work in Hong Kong for less than 60 days (and the rest of time in other non-US countries)....you don't get hit with Hong Kong salaried taxed at all.

But would you end up having to pay the 15% US payroll tax on that portion even if you pass the physical test?

US payroll tax might be higher than the total Hong Kong tax witholding percentage.


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## Bevdeforges (Nov 16, 2007)

The payroll tax can kick in whether or not your earnings are excluded for income tax purposes. Depends on whether or not you're enrolled in the local national social insurance system (usually). If your goal is to avoid being taxed altogether, you're probably going about it wrong.

Take a look at IRS Publication 54 to get the US side of things.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

There are some individuals, usually very well-to-do, that reportedly carefully maintain a perpetually nomadic existence to be tax resident nowhere. This is rather difficult to pull off legally.

It doesn't work that well for U.S. citizens even if you could pull it off. Yes, you can often get the Foreign Earned Income and Foreign Housing Exclusions, and those are powerful exclusions, but that's really the limit.

Self-employment income is not excludable from U.S. Self-Employment Tax unless you are contributing to a treaty country's social insurance system on/from that income. Hong Kong and Singapore do not have social security treaties with the U.S. as far as I know. (Singapore certainly doesn't.) The upside, though, is your SE Tax boost your U.S. Social Security earnings history, so you're very likely to get some or even more of those contributions back in retirement, and you maintain U.S. social insurance coverages (e.g. disability).


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