I'm currently working in Austria for the Winter season and have heard that many people get whatever they paid in taxes in a foreign country back. I saw the Pub 514 form and noticed that it said only certain countries were able to do this with America. My question is, does it work with Austria?
Other - Taxes - 2 Answers
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1 :
Can't answer the Austria question, but you do understand the money back is just a credit against your US taxes? The intent of the tax treaties (that's what you're talking about) is to prevent double taxation, not to let you live tax free. You'll pay US taxes on your worldwide income.
2 :
US citizens are taxed on their worldwide income. This means you will owe US income tax on money earned in Austria. You will be able to use any Austrian income tax paid as a credit against your US income tax on your Austrian income.
