When you live abroad (say I'm a US citizen who is going to move to and work in Germany or Austria) how do you pay taxes? Do you get taxes from the US and Germany? Just the US? how does all of that work?
Other - Taxes - 2 Answers
Random Answers, Critics, Comments, Opinions :
1 :
You pay taxes to the country you are resident in. There are complex extra rules for the wealthy and people doing split years but generally you pay taxes to the country you live and work in.
2 :
You will pay taxes to Germany because you are working there. You will ALSO pay taxes to the US because the US taxes you on worldwide income, regardless of where you are living. (This is unique to the USA.) Read IRS publication 54. If you meet the 330 day test, you can exclude some or all of the income from Germany on the US return. If yiou don't meet the test, there is a publication 514 for what to do with the foreign taxes paid.
