David Woods, EA, ChFC, CLU wrote:

- quote -

This is simply not true. There are certain exemptions based
on tax treaties (e.g. J-1 scholars), where the income earned
in the US is exempt from income tax. If the poster is a US
citizen or green card holder, then he will certainly have to
pay US taxes, but in the worst case he could be subject to
taxes in both countries, depending on the tax laws of the
country where that foreign company is based and on the
provisions of the tax treaty with that country, if there is
one.

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David Woods, EA, ChFC, CLU wrote:
- quote -

No, that is not necessarily true. Some countries have
withholding taxes applicable to payments to service
providers outside the particular country. Thailand, for
example, has a withholding tax on payments made to persons
outside Thailand.

If the country has a tax treaty with the U.S., there may be
provisions in that treaty that affect payments to residents
of the other country.

It is true that the payments the OP receives are subject to
U.S. income and self-employment taxes. These taxes would
apply to the gross amount received. The OP would be
entitled to a deduction OR credit for the tax withheld.
Since he works in the U.S., he is not eligible for the
foreign earned income exclusion.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Thanks David.

The company is not withholding any US incomes taxes for me.
I contacted two accountants and they told me that I need to
pay US income taxes but I can use the tax to foreign country
as credit. Should I volunteerly make advance payment of my
US income taxes now or should I wait till end of tax year
(to avoid penalty)?

Thanks

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"blueregret" <blueregret[at]gmail.com> wrote:

- quote -

are in the US, any income from labor is subject to US income
tax ONLY.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I was hired by a foreign company but I am working in the US
from day one. I have NEVER been to that foreign country and
my pay check is issued by the foreign country with income
tax deducted and submitted to the foreign country. Do I
still need to pay US income taxes? If I do, do I need to
start paying it now or do I pay it at the end of tax year?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >