Mujitsu and Tairaku's Shakuhachi BBQ

Justin · 2009-05-21 22:41:41

This is a rather specific tax question, in the hope that one of you knows about this.

If I have a US bank account but am not a US resident, and live abroad, but receive money to my US account for teaching internet lessons to people in the US, am I meant to pay US tax on that money? Or, any ideas where I can find out?

Thanks
Justin

edosan · 2009-05-21 23:19:33

Justin wrote:
This is a rather specific tax question, in the hope that one of you knows about this.

If I have a US bank account but am not a US resident, and live abroad, but receive money to my US account for teaching internet lessons to people in the US, am I meant to pay US tax on that money? Or, any ideas where I can find out?

Thanks
Justin

Try this: http://www.irs.gov/faqs/index.html

And, more specifically, this: http://www.irs.gov/faqs/content/0,,id=199953,00.html

If that fails to answer your question, look around the site for an appropriate contact address.

And remember: Google is our friend...mostlly.

Kiku Day · 2009-05-22 02:08:55

Although PayPal does take a chunk of the payment, I find that system to be the easiest way to deal with when having internet students from several countries. You can make a deal with the students to share what PayPal takes. So fa everybody has found that to be a fair way of overcoming the large PayPal fee.
Good luck!

Justin · 2009-05-22 04:14:57

Kiku Day wrote:
Although PayPal does take a chunk of the payment, I find that system to be the easiest way to deal with when having internet students from several countries. You can make a deal with the students to share what PayPal takes. So fa everybody has found that to be a fair way of overcoming the large PayPal fee.
Good luck!

Hi Kiku
Thanks for the reply. Yes I had been doing that until now, but thought a bank account would be a nice way to avoid those paypal fees as they seem to stack up several of them! Also (with my bank at least) there is a good relationship between the branches overseas, so it can be easy to handle several accounts, which is nice. I'll let you know if it works out.

Edosan, yes, google is great isn't it. I was swamped by the info though and didn't know where to look for such a non-standard and specific question as this. Thanks a lot for the link, I will check that out for sure.

Justin

Kiku Day · 2009-05-22 04:34:50

When I was in Japan I opened a City Bank Account (there is a branch in Harajuku, Tokyo [the hood where I was born]). That proved to be a very convenient thing between US, Japan and UK (and other countries where they had City Bank branches - which was not Denmark). I don't know if that is the bank you meant? The only problem with City Bank in Japan (if that hasn't changed since) was that you had to pay a fee if your bank account had less than.... I think it was 300,000 yen. Stupid. Otherwise it was really worth it for international transactions.

Oh... another thing. When I moved to the States, I discovered the wonderful nature of a new country and their just as non-flexible rules as in other countries. To open a bank account, I needed to get a social security number - which I couldn't apply for before after 3 weeks after my arrival. I couldn't rent a flat without a bank account.... catch 22.... I don't know if other rules apply when you have address outside of the US, but I could imagine the City Bank option is a good way around it (if they haven't cracked).

Last edited by Kiku Day (2009-05-22 04:39:28)

chikuzen · 2009-05-22 10:47:19

Justin, I was recently informed that paypal has more than one type of account. Maybe a "business" account and another. I was told that one of these do not take the 21/2% or whatever it is now. I'm going to check into that asap.

edosan · 2009-05-22 16:36:01

chikuzen wrote:
Justin, I was recently informed that paypal has more than one type of account. Maybe a "business" account and another. I was told that one of these do not take the 21/2% or whatever it is now. I'm going to check into that asap.

The PayPal business accounts have their own shenanigans and pitfalls, so check carefully (ie Google "Paypal business accounts, of course; there's lots there for the readin').

Plus, it seems to me that Justin wasn't asking about banking or accounts, but about how and whether he should pay US taxes on money earned in Japan via online students.

Tairaku 太楽 · 2009-05-22 17:37:56

Except that he's a Pom not a Yank so there's no reason for him to file taxes in the States.

Tairaku 太楽 · 2009-05-22 19:09:32

Generally speaking you only have to pay individual taxes in countries you are either citizen or resident of. If you have a business you may have to pay in other countries as a business but not an individual. I assume Justin is being paid as an individual so he should only have to worry about England or Japan.

Mujitsu and Tairaku's Shakuhachi BBQ

#1 2009-05-21 22:41:41

Internet lessons, and tax experts?

#2 2009-05-21 23:19:33

Re: Internet lessons, and tax experts?

Justin wrote:

#3 2009-05-22 02:08:55

Re: Internet lessons, and tax experts?

#4 2009-05-22 04:14:57

Re: Internet lessons, and tax experts?

Kiku Day wrote:

#5 2009-05-22 04:34:50

Re: Internet lessons, and tax experts?

#6 2009-05-22 10:47:19

Re: Internet lessons, and tax experts?

#7 2009-05-22 16:36:01

Re: Internet lessons, and tax experts?

chikuzen wrote:

#8 2009-05-22 17:37:56

Re: Internet lessons, and tax experts?

#9 2009-05-22 19:09:32

Re: Internet lessons, and tax experts?

Board footer