US Expat in France: Tax Obligation when Paid in Dollars?

Go Back   Expat Forum For People Moving Overseas And Living Abroad > Europe > France Expat Forum for Expats Living in France

France Expat Forum for Expats Living in France Welcome to the France Expat forum. This is the place to meet like minded people who have made France their new home. This forum is ideal for those who have moved to France and those thinking about making France their new home.

US Expat in France: Tax Obligation when Paid in Dollars?


Reply
 
Thread Tools
  #1 (permalink)  
Old 5th March 2013, 08:12 PM
New Member
 
Join Date: Mar 2013
Location: Grenoble
Posts: 1
Rep Power: 0
heatster is on a distinguished road

Users Flag! Originally from usa. Users Flag! Expat in france.
Default US Expat in France: Tax Obligation when Paid in Dollars?

Hi,

I'm a US citizen living in France from 8/12 through 8/13. I telecommute, performing the following work for US companies:

- Salaried employee, paid in USD to a US bank account, reported on W2.
- Contract work, paid in USD, reported on 1099-MISC to a US address.

The work for this year is all physically performed in France while legally resident on an OFII vignette with a work permit. However, the work is all performed for US companies and paid in the US.

I know I need to file a US return, but I'm wondering if I'm obligated to pay French taxes as well? Given that I'm paid in USD to US accounts, am I still considered tax resident in France?

Also, one question on the FEIE. I will pass the physical presence text in mid-July. Do I need to file an extension and wait until I've passed the test before filing my US taxes? And do I prorate the benefit across the two tax years based on the number of days spent in France during 2012 and 2013?

My head is spinning with this stuff -- thanks to the community for any advice you can offer.

- Bob

Reply With Quote
  #2 (permalink)  
Old 5th March 2013, 09:14 PM
Bevdeforges's Avatar
Super Moderator
 
Join Date: Nov 2007
Location: deepest, darkest Essonne
Posts: 25,965
Rep Power: 20
Bevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond repute
2919 likes received
149 likes given

Users Flag! Originally from usa. Users Flag! Expat in france.
Default

First of all, you are technically resident in France if you're on a long-stay visa. Where you are paid, what currency you are paid in or where your employer is located is NOT relevant at all to your situation. What counts is where you are located while you are doing the work.

The fact that you are carrying on a professional activity in France is enough for the French to consider you tax resident.

As far as the physical presence test is concerned, yes you do have to file for an extension until you have been outside the US for a full 365 days (plus, give yourself another month for pulling the paperwork together). Details on how to do this and which forms to use are in Publication 54 from the IRS website.

Form 2555 (where you claim the FEIE) tells you precisely how to prorate the claim (basically by the proportion of days in the tax year that you were outside the country).
Cheers,
Bev

Reply With Quote
  #3 (permalink)  
Old 6th March 2013, 04:33 AM
Member
 
Join Date: Jun 2012
Location: Switzerland
Posts: 76
Rep Power: 0
swisspinoy is on a distinguished road
8 likes received
16 likes given

Users Flag! Originally from usa. Users Flag! Expat in switzerland.
Default

Quote:
Originally Posted by heatster View Post
Hi,

I'm a US citizen living in France from 8/12 through 8/13. I telecommute, performing the following work for US companies:

- Salaried employee, paid in USD to a US bank account, reported on W2.
- Contract work, paid in USD, reported on 1099-MISC to a US address.

The work for this year is all physically performed in France while legally resident on an OFII vignette with a work permit. However, the work is all performed for US companies and paid in the US.

I know I need to file a US return, but I'm wondering if I'm obligated to pay French taxes as well? Given that I'm paid in USD to US accounts, am I still considered tax resident in France?

Also, one question on the FEIE. I will pass the physical presence text in mid-July. Do I need to file an extension and wait until I've passed the test before filing my US taxes? And do I prorate the benefit across the two tax years based on the number of days spent in France during 2012 and 2013?

My head is spinning with this stuff -- thanks to the community for any advice you can offer.

- Bob

Of course you pay France taxes. You are living in France and using the French infrastructure and you are not living in the US and using the US infrastructure. Which currency you are paid in is irrelevant.

The dictatorships of Eritrea and America are the only two regimes which double-tax the same earned income of non-residents who use the services of other nations.

Reply With Quote
Reply

Tags
foreign earned income, tax residency, taxes in france

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Uk Limited Company Paid By Uk Agent But Working In France croc21234 France Expat Forum for Expats Living in France 2 17th December 2012 02:51 PM
New US citizen tax obligation kasspav Expat Tax 9 1st September 2012 08:07 AM
Obligation of 176 VISA qirat Australia Expat Forum for Expats Living in Australia 23 20th May 2012 08:25 PM
moral obligation paddygunner Australia Expat Forum for Expats Living in Australia 14 9th August 2010 11:28 AM
Paid activity in France while on a Visitor's Visa? whitelilac France Expat Forum for Expats Living in France 7 8th June 2009 04:31 PM

LEGAL NOTICE
By using this Website, you agree to abide by our Terms and Conditions (the "Terms"). This notice does not replace our Terms, which you must read in full as they contain important information. You must not post any defamatory, unlawful or undesirable content, or any content copied from a third party, on the Website. You must not copy material from the Website except in accordance with the Terms. This Website gives users an opportunity to share information only and is not intended to contain any advice which you should rely upon. It does not replace the need to take professional or other advice. We have no liability to you or any other person in respect of any content on this Website.
FORUM PARTNERS

ExpatForum.com is owned and operated by VerticalScope Inc.

Retiring Overseas Guides | Moving Overseas Guides | Cost of Living | Health Care Guides


All times are GMT. The time now is 06:39 AM.


Powered by vBulletin®
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO