Foreign Income while in the US

Forum|Forum|5 years ago
May 27, 2021
1 reply
30 views

My wife is a permanent resident (she's Thai) but she's in the US. She's working remotely for a company in Thailand which they pay her monthly and is already taxed in Thailand. I have been reading about Foreign Income but it looks like the exempt only works if she's in Thailand and not in the US.

I could be wrong but am I missing something and she will be double taxed?

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Best answer by pk_

@4440864 , it is a messy situation at best.

1. when the work is done here in the USA, the income is generally not considered foreign.

2. if this income is taxed by Thailand -- who pays that? Does she have a Thai tax ID? Why is it being taxed in Thailand -- the work is being done in the USA> Please tell me more on this .

3. The only around this would be to resource the Thai income ( for work done in the USA ) to Thailand and thereby class it as foreign income and therefore the tax thereon is eligible for credit. But this is much more convoluted way to do it.

4. was she employed by this same company ( the payor) if and when she was in Thailand or is this a contract for work ---- then it needs to be treated differently, including FICA taxes. Tell me more about the work relationship

You say she has Green Card . Are you also a resident or citizen of US--- are you both residing in the USA -- since when ?

Need these answers to make sense

pk_

Answer

Level 15

@4440864 , it is a messy situation at best.

1. when the work is done here in the USA, the income is generally not considered foreign.

2. if this income is taxed by Thailand -- who pays that? Does she have a Thai tax ID? Why is it being taxed in Thailand -- the work is being done in the USA> Please tell me more on this .

You say she has Green Card . Are you also a resident or citizen of US--- are you both residing in the USA -- since when ?

Need these answers to make sense