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I've just moved to Agde for a year to participate in a year long culinary program, 6months of classes and 6 months of 440euro paid internship. However I've been saving for several years to be able to live off a savings I have stored in the US. I was wondering how taxation would be done based on this as it's not currently in MY account but I will have a steady amount of money in an acct to draw from and place into a French Bank acct(set up through my program). I understand I'll have to file in the US for my tax year there, but because my income would be well under 6k euro from actual work based income due to only getting paid for my internship I was I understanding that I would pay 0℅ taxation on income.

Is there anyone out there who can help me understand?



Thanks Istoc


P.S. As a side question I was curious if Free.fr sold phones to use with its service that may be cheap enough to afford as I don't want to sign up for a contract plan to get a phone that works here.
 

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Don't know what sort of visa you'll be on for France, but chances are you won't owe much (if any) taxes in France - even if you wind up having to file. Both France and the US require you to declare all of your worldwide income, which includes both your internship stipend, and any and all interest paid on your savings in the US. The capital in your account - i.e. the money you put into the account in prior years from whatever source - is not subject to taxation, whether by France or the US.

When you transfer money from your US account to your French account, your bank will likely ask you the purpose of the transfer as they are required to report large cash transfers to the Treasury Dept. Your French bank may also ask about the source of the money when it arrives in your account. Again, they are required to monitor your accounts for the Banque de France - admittedly for potential tax implications. But a transfer of capital is not considered income and thus is not taxable.
Cheers,
Bev
 
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