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Discussion Starter · #1 ·
Hi all,

I've been reading through the various tax threads that have popped up recently. They have been helpful, but, as with me, everyone seems to have a different situation. I was hoping I could post my situation and get some feedback...

I am here on a Competences et Talents Visa. My 2013 income consists of the following:

Salary from a French company: approx 11,000 euros (this money is paid into my French account)
Self employed income earned in the US, doing work for US companies: approx $65,000. (this money is paid into my US account)

I've been trying to understand what my tax liability will be for 2013. I've been reading about the Foreign Earned Income Exclusion.

I'm married (wife is American and does not work) and have two children (ages 6 and 3, both american).

Here are some questions:

1. Considering my situation, will I be able to avoid double taxation - paying US taxes on the income I've earned in France (11,000 euros) - by way of the FEIE?

2. The payments I receive from the US companies are sent via check to my family in Oregon. A family member then deposits them into my US bank account once a month. Can I get out of paying Oregon State tax, as I am no longer a resident there?

3. Usually I receive tax breaks in the US for having 2 children (child tax credit). Will I still be eligible for that credit as an expat?

4. Can anyone suggest a good Tax expert that deals with US expats in France?

Finally, as this is the first time in my life that I am self employed, any other advice on what to expect as far as payments would be greatly appreciated. And if anyone knows of a quick way to help me have an idea how much I will owe this year, it would be be equally appreciated.
 

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Discussion Starter · #2 ·
I'm afraid I forgot one other question. The work I do for the US companies is done out of a home office here in France (in a house I'm renting). Also I've had office and travel expenses relating to my US work. From what I've understood, things like office-in-home space and business expenses can typically be deducted. Will I qualify for these types of deductions?
 

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As a US citizen, you are obligated to file your US tax returns just like always - and like always, you must declare your worldwide income. Only difference is that you have a couple of options related to your residence overseas.

As a French tax resident, you must also declare your worldwide income to the French fisc (like the IRS only French) and pay taxes in France.

Normally, you claim the FEIE on your US taxes - this is that deal where you get to exclude up to $97K on form 2555 for earned income overseas. There is another option - that of taking a credit against your US taxes for income taxes paid to a foreign government, but the trick to that one is that you have to have paid the taxes in order to deduct them (and you probably won't know how much you'll have to pay in French taxes until September of next year, due to the French tax calendar).

Your US self-employment is eligible for the FEIE because you are actually doing the work while in France. Where your customers are located or where they are depositing your payments is irrelevant.

You should be able to avoid double taxation - but you should take a look at IRS publication 54 to see how that works.

2. The payments I receive from the US companies are sent via check to my family in Oregon. A family member then deposits them into my US bank account once a month. Can I get out of paying Oregon State tax, as I am no longer a resident there?
Depends on Oregon's tax law, but generally, if you are tax resident in France, you should be able to avoid paying state taxes. Unless, of course, your company is registered in Oregon and has to pay its own state taxes.

3. Usually I receive tax breaks in the US for having 2 children (child tax credit). Will I still be eligible for that credit as an expat?
Depends whether you use the FEIE or the foreign tax credit, I think. The big issue will be what taxes you are paying in France on your income and the time delay in finding out what your French taxes will be.

4. Can anyone suggest a good Tax expert that deals with US expats in France?
The US Consulate in Paris publishes a list of English speaking attorneys and tax accountants on their website: Resources for US Citizens | Embassy of the United States Paris, France Or, you can join the US expat group AARO which provides information about both US and French taxes to its members. Several of the AARO members are tax attorneys in Paris who offer services for both French and US taxes.
Cheers,
Bev
 
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