Tax Free Work (jobs, companies, taxes, pay)

[MikeNigh]

I currently work for a company in germany and I was researching how to do the taxes and I found something interesting...

Foreign Earned Income Exclusion

It appears that if you work for a foreign company and you do not live in the US you are tax free up to around $90k. Considering how fast our taxes are going up... if you were making 90k you'd be making the equiv of 150k taxed if you choose to live outside of the USA. And considering how easy it is for us for live abroad (some countries let us stay for remarkable amounts of time...) The amount you would make by not losing taxes would pay for an endless luxury world tour. Or you could just hop between a few different countries and retire incredibly young (and by that time america will be so poor and broke back you'll be like a king/queen).

So not only do companies have incentives to put jobs off shores... It appears that there are also incentives to put professionals offshore too.

[macroy]

Interesting. Do you still have tax obligations to the country you're working in?

[JohnSoCal]

Originally Posted by macroy

Interesting. Do you still have tax obligations to the country you're working in?

Yes.

[Mystique13]

Wait. If a U.S. Citizen works and lives in Germany you also don't pay any German taxes? Are you totally living tax free? I doubt that. But do enlighten, if possible.

[Just_the_facts]

Most countries (such as Germany) have higher taxes than the US has. And you're not going to make a lot of money in many in low tax countries.

[MikeNigh]

If you are paid as a contractor so that you do your own taxes then what forces you to pay another countries tax?

I think this loophole only works if you have a location independent job.

[EzPeterson]

Your tax burden at $150k is far from $60k. More like $22k without many deductions.