Taxes
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26-03-2017, 09:31 AM
RE: Taxes
(25-03-2017 11:32 PM)yakherder Wrote:  Just finished my Canadian taxes. I still have to file in the US.

Do you have to pay US income tax on money earned in Canada and/or vice versa?

#sigh
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26-03-2017, 10:11 AM
RE: Taxes
(26-03-2017 08:35 AM)Full Circle Wrote:  Can we use as a basis my already created spread sheet?

I'll play with it if you'll share the spreadsheet as opposed to a screenshot.

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26-03-2017, 10:23 AM
RE: Taxes
(26-03-2017 03:47 AM)ukatheist Wrote:  Plus, in addition to taxes, working age people pay national insurance which goes towards social security and the NHS, roughly an additional 12% under PAYE or 9% for self employed (who aren't entitled to as many social security benefits as those on PAYE), on income up to about 45k, then 2% on income above that.

Interesting, thanks. So if I take US Social Security @ 12.4% (6.2/6.2 split employee/r) and Medicare @ 2.9% for 15.3%, you're taxed at roughly 2/3 more (25.8% - 12/13.8 split) for old sick people taxes. Other difference are you collect more after a certain income threshold while we cap it at ~$16000US total form both employee and employer. (Getting rid of this cap would eliminate many of our old sick people problems instead of just encouraging them to hurry up and get on with it.)

(26-03-2017 03:47 AM)ukatheist Wrote:  Tax rates are:
Basic rate (taxable income i.e. after allowances) 20%
Higher rate (taxable income over 33k ($41US) 40%
Additional rate (taxable income over 150k($187US) 45%.

Your income tax brackets are less progressive than ours in that your lower middle class/paycheck-to-paycheck pay a lot more than ours %-wise.

Your VAT is ~2x most US state/local (hell even weed is only 13%).

Do you pay property taxes? Do you have local provincial taxes as well as her majesty's?

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26-03-2017, 10:47 AM
RE: Taxes
(26-03-2017 09:31 AM)GirlyMan Wrote:  
(25-03-2017 11:32 PM)yakherder Wrote:  Just finished my Canadian taxes. I still have to file in the US.

Do you have to pay US income tax on money earned in Canada and/or vice versa?

There's a foreign income exclusion amount that's generally high enough that your average middle class or slightly above middle class wage won't face double jeopardy. An upper middle class person would have to pay double taxes on a small portion. A rich American dual citizen living in Canada might either seriously consider renouncing US citizenship or learning the art of finding obscure exemptions.

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26-03-2017, 12:24 PM (This post was last modified: 26-03-2017 01:01 PM by Full Circle.)
RE: Taxes
(26-03-2017 10:11 AM)Popeyes Pappy Wrote:  
(26-03-2017 08:35 AM)Full Circle Wrote:  Can we use as a basis my already created spread sheet?

I'll play with it if you'll share the spreadsheet as opposed to a screenshot.

I put it in a Dropbox named TTA Tax, anyone can access it. Let me know if you have a problem with it.

https://www.dropbox.com/s/77nfqo866tsnhn....xlsx?dl=0

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26-03-2017, 01:20 PM
RE: Taxes
(26-03-2017 09:31 AM)GirlyMan Wrote:  
(25-03-2017 11:32 PM)yakherder Wrote:  Just finished my Canadian taxes. I still have to file in the US.

Do you have to pay US income tax on money earned in Canada and/or vice versa?
Last I heard the US and Estonia are the only two countries that taxes its citizens on money earned IN OTHER COUNTRIES. They tax you regardless of where the income is earned or where you live; all other countries tax only residents.

So if you're a US citizen working in Canada, my understanding is you pay taxes in both countries. I don't believe there's any coordination as such, but there is some kind of foreign earned income exclusion up to around $100k. Most of the double taxation is on passive (or so-called "unearned") income like interest , capital gains and dividends.

This is why it's actually a Good Thing that if you want to become a citizen of many countries, you have to renounce your US citizenship. It's the only way to get rid of the IRS.

If I ever did something like that, I don't know how it would work if I lived in, say, Oslo, but continued to do contract work for clients in the US. In theory if I were no longer a US citizen it shouldn't be relevant. My client can still claim me as an expense of doing business, and I can still claim the income in my new home country.

Of course the teleworking economy (as well as online retailing) has created issues like this. If I live in New York and buy something from a company in Kansas, do I pay New York sales tax, Kansas sales tax, or neither, or both? Technically Kansas is going to want to get sales tax from a Kansas online retailer, and New York wants to levy a Use Tax on me that just so happens to be the same as its sales tax, though it's hard to enforce, and there are some legitimate exceptions designed to encourage e-commerce.

Currently I live in NY and a company based in Arizona that's incorporated in South Dakota but owned by a parent company in Washington State, provides 100% of my contracting income. I pay federal and NY state taxes on that. If one of those other three states somehow became aware of this arrangement I wonder if they would try to get something from me also?? I don't think so, but I'm sure that somewhere, a legislator is casting a lustful eye on such opportunities.

At any rate ... under Trump's proposed tax reform, my effective tax rate would drop modestly. But there's no guarantee it will be enacted as proposed, or that in fact what's enacted (assuming anything is) will bear any resemblance to campaign promises.
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26-03-2017, 01:40 PM
RE: Taxes
When we worked overseas we had a foreign income exclusion. We ended up paying taxes there and in the US though.

"Foreign Earned Income Exclusion
If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction.
If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation ($92,900 for 2011, $95,100 for 2012, $97,600 for 2013, $99,200 for 2014 and $100,800 for 2015). In addition, you can exclude or deduct certain foreign housing amounts.”

https://www.irs.gov/individuals/internat...-exclusion

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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26-03-2017, 02:10 PM
RE: Taxes
(26-03-2017 10:23 AM)GirlyMan Wrote:  Do you pay property taxes? Do you have local provincial taxes as well as her majesty's?

We have council tax for domestic homes, and business rates, both based on the property value and payable by the occupier or owner to local government (councils). There are discounts on council tax if there is only one income, or if the property is empty for prolonged periods and it is paid by the council if there are no earners. Council tax goes towards local services like buses, libraries, road repairs, garbage collection, education, social housing and council benefits (and of course the cost of the councils themselves). Councils also get a settlement from the government so the council tax/rates make up the difference.

My council tax for an average priced property, is about £1700 per year, but this is a bit more than most councils as we currently have no landfill sites, so have to pay other councils to take our garbage. Recycling is taken very seriously here as a result!

The only other 'tax' I can think of is the tv licence fee, payable if your home is capable of getting a tv signal, or if you watch tv online, and goes to fund the bbc - about £150 per year.

In addition to VAT there are also duties on certain products, booze, tobacco and road fuel most notably. This generally doubles the price (for example fuel duty is £0.58 per litre) - petrol where I am is about £1.20 per litre including duty and VAT.
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26-03-2017, 02:38 PM
RE: Taxes
(26-03-2017 02:10 PM)ukatheist Wrote:  
(26-03-2017 10:23 AM)GirlyMan Wrote:  Do you pay property taxes? Do you have local provincial taxes as well as her majesty's?

We have council tax for domestic homes, and business rates, both based on the property value and payable by the occupier or owner to local government (councils). There are discounts on council tax if there is only one income, or if the property is empty for prolonged periods and it is paid by the council if there are no earners. Council tax goes towards local services like buses, libraries, road repairs, garbage collection, education, social housing and council benefits (and of course the cost of the councils themselves). Councils also get a settlement from the government so the council tax/rates make up the difference.

My council tax for an average priced property, is about £1700 per year, but this is a bit more than most councils as we currently have no landfill sites, so have to pay other councils to take our garbage. Recycling is taken very seriously here as a result!

The only other 'tax' I can think of is the tv licence fee, payable if your home is capable of getting a tv signal, or if you watch tv online, and goes to fund the bbc - about £150 per year.

In addition to VAT there are also duties on certain products, booze, tobacco and road fuel most notably. This generally doubles the price (for example fuel duty is £0.58 per litre) - petrol where I am is about £1.20 per litre including duty and VAT.

There is also Insurance Premium Tax (IPT) at a standard rate of 10% rising to 12% from the First of June; higher rate is 20%.

Councils are having to cut services through lack of income. An increase of 2% or more requires a local referendum. After this law was passed the Secretary of State for Communities and Local Government expressed his condemnation of almost all local authorities increasing their council tax charges by 1.99% - no one could see that coming, surely.

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26-03-2017, 04:07 PM
RE: Taxes
(26-03-2017 12:24 PM)Full Circle Wrote:  
(26-03-2017 10:11 AM)Popeyes Pappy Wrote:  I'll play with it if you'll share the spreadsheet as opposed to a screenshot.

I put it in a Dropbox named TTA Tax, anyone can access it. Let me know if you have a problem with it.

https://www.dropbox.com/s/77nfqo866tsnhn....xlsx?dl=0

Thanks. I'll play around with it, and post my results.

You do need to change the formula in cell I38 to =(I30-A38)*C38

You are taxing that group at 42% like they had $3.5 million of income, but they had less. I haven't checked the rest of the cells for similar errors.

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