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Level 2
posted Dec 3, 2022 1:41:08 PM

Complicated remote work scenario

I’m a fully remote worker working for a (California) company and living/paying taxes in another state.

 

I am contemplating taking a second, international remote job, where I would be spending time in both countries and working both remote jobs. Broadly speaking, what are the tax implications of doing this?

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1 Best answer
Level 15
Dec 5, 2022 7:14:19 AM

As a U.S. citizen, you are obligated to pay U.S. federal income tax on your worldwide income.  You may qualify for a foreign tax credit if your income is also subject to the income tax of a foreign country.

https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit

4 Replies
Level 15
Dec 4, 2022 6:42:12 AM
Level 15
Dec 4, 2022 6:47:37 AM

If you are a sole proprietor filing a Sch C and working from home in the US  then nothing will change.

Level 2
Dec 4, 2022 10:55:53 PM

I am not self-employed, I am on a W2. So in this case I would have the same US job, and I would have a second job in a second country. I would reside in both countries at different times of the year (more time abroad if that matters), but retaining my state residency. No matter what country I am in, I would be working both jobs.

 

Understandably I’m not expecting advice on tax laws of a foreign country, I am more interested in what this would mean as far as U.S. tax obligations.

Level 15
Dec 5, 2022 7:14:19 AM

As a U.S. citizen, you are obligated to pay U.S. federal income tax on your worldwide income.  You may qualify for a foreign tax credit if your income is also subject to the income tax of a foreign country.

https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit