Hi Team
I have a few urgent questions for my friend Mark and hope someone can give the advice.
1. Mark will stay in the State for 60 days this year. He spent some days for tourism this year and later he will come to the state for working for some days. He worked in the US for the last year and the year before. He will spend less than 183 days based on 183 days rule for 3 years. Does Mark need to pay global tax or only US income tax?
If Mark stays in the state for longer days and pass the 183 days rules, I believe he needs to pay global tax. His oversea income will be much more than his US tax and he stays in one place with less than tax than the state.
2. Does Mark need to compensate social security tax and medicare tax for the oversea income when he is not in the state?
3. Is there any way for Mark to pay less tax considering he spent most of days not in the state? I heard for the US citizens not working in the US can enjoy a much higher tax free withholdings.
4. When Mark comes to the state, does he need to compesate the tax difference immediately because the tax difference between the two countries is a little bit high? I heard if people need to compensate more than 10% tax, there will be some penalty. However, based on Mark's previous situation, he didnt realise he may need to come to the state for work.
Sorry for lots of questions
Helen
