Are You Double Taxed If You Practice Abroad?

[Doulos]

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I've read more than one thread in this forum which is along the lines of "Get a Fellowship and be prepared to pack up and move to an anesthesia-practiced-by-MDs-only country" if mid-levels end up destroying reimbursement levels in the future.

One thought I had on that though. I remember hearing somewhere that the U.S. is one of the only nations that taxes the incomes that their citizens earn while working in another country.

Would that mean that if you relocated to Canada you would get your income hit with full taxes (rather high I hear) from CA and then get your income taxed again by Uncle Sam?

It would seem that you would have to revoke your U.S. citizenship to make it work.

 

[periopdoc]

As a US citizen working abroad, you are required to submit annual US tax returns and pay taxes on earnings in excess of ~$91,000. You are also liable for taxes within your (previous) state of residence within the US. As far as which taxes and what amounts, you would have to speak to an attorney or a good accountant with experience in these matters.

If you decide to pursue a career in another country, it is probably a good idea to immigrate for a multitude of reasons. However, immigrating to avoid US Federal and State taxation is not one of them as it is illegal.

- pod

 

[Doulos]

That's the answer I was worried about.

It looks as if come hell, high water, or 50% cut in reimbursements, I'm stuck int he U.S. for the duration.

There's two things which make me feel very, VERY uncomfortable regardless of how "safe" I may feel living in my area. #1 is driving anywhere except to the end of my driveway without a seatbelt and #2 is going anywhere without my pistol.

I just don't know of any other nation which has a social pattern similar to ours which chooses to respect the individual's right to self defense like the U.S. has.

 

[anothercaliapp]

This $90K exclusion has residency requirements (ie, need to live abroad for like 330 days out of the year). Also, you do get tax credits for any taxes paid abroad so you won't get taxed twice. This area is really tricky since the US and other countries may have tax treaties that impact certain tax treatments. Also, money held in foreign accounts must be reported annually to the IRS (on the FBAR). The US is rare since it taxes world-wide income from US persons and not just income earned within the US. This is the reason why US corporations frequently set up legal entities abroad to avoid this world-wide corporate tax (which is the highest in the world). But if you get taxed in Canada as a US person, you should get a tax credit for US purposes (but subject to any treaty provision).