What are the tax benefits of working overseas?

June 16, 2000

Subject:  How can I benefit from working over seas?
From:  Ray Decareau
Date:  Mon, 22 May 2000

Hi,

I work out of the bay area and I am overseas. I have been informed that there are Tax benefits for working overseas such as being non exempt. I have been using H&R Block over the years and have not received any good advice. Can you please get back with me. Thanks

Ray Decareau

Answer

Date:  Fri, 9 Jun 2000

Hello Ray,

The IRS has an excellent publication about taxation of expatriates. It's IRS Publication 54, Tax Guide for US Citizens and Resident Aliens Abroad. I suggest you use the links section of our web site to look it up and get a copy.

Most US employers who station their employees overseas make tax return preparation service available to the employees.

Remember, you also have to deal with the tax laws of the country where you are working and may need to refer to tax treaties between that country and the U.S., not to mention the state (such as California) that you have temporarily left. You might want to consult with one of the "Big Five" firms. They all have teams that specialize in expatriate returns, and have offices in most major cities throughout the world.

The firms are KPMG, Deloitte Touche, PriceWaterhouse Coopers, Arthur Andersen, and Ernst and Young.

Good luck!
Mike Gray

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