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Old Aug 21st 2011, 5:07 pm
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Hi, Can anyone help. My sister is applying for American citizenship. She has a test soon and should pass. In a few years time she has the option to work in Sweden. She know she will have to file her tax's in the US but does she have to pay tax there also? She will have a UK and US passport. Thanks
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Old Aug 21st 2011, 5:11 pm
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Default Re: tax's

Originally Posted by matmens37 View Post
Hi, Can anyone help. My sister is applying for American citizenship. She has a test soon and should pass. In a few years time she has the option to work in Sweden. She know she will have to file her tax's in the US but does she have to pay tax there also? She will have a UK and US passport. Thanks
Are you asking if she has to pay US taxes, or Swedish taxes? I'm not sure anyone here will know the answer to such a specific question. Your sister should probably ask a tax accountant with experience in international business / taxes.

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Old Aug 21st 2011, 5:13 pm
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Originally Posted by Noorah101 View Post
Are you asking if she has to pay US taxes, or Swedish taxes? I'm not sure anyone here will know the answer to such a specific question. Your sister should probably ask a tax accountant with experience in international business / taxes.

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I need to know if she will pay US tax when working in Sweden.
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Old Aug 21st 2011, 5:22 pm
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Default Re: tax's

Originally Posted by matmens37 View Post
I need to know if she will pay US tax when working in Sweden.
It will depend on how much she earns, I suppose. A professional tax consultant would know the details.

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Old Aug 21st 2011, 5:22 pm
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Default Re: tax's

Originally Posted by matmens37 View Post
I need to know if she will pay US tax when working in Sweden.
If she'll be resident in Sweden she should be able to claim a tax allowance on her foreign earnings, currently around $90,000, before which she'd have to pay US taxes. If there is a tax treaty between the US and Sweden then if she earns more than that amount she'd also be able to deduct Swedish taxes paid from any US tax bill.
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Old Aug 21st 2011, 5:45 pm
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Default Re: tax's

Originally Posted by matmens37 View Post
I need to know if she will pay US tax when working in Sweden.
A USC must report all worldwide income on their annual US tax return. Whether she will have to pay tax on foreign earnings is another matter. It's already been suggested that she consults with a tax advisor with international tax experience...that is good advice.
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Old Aug 21st 2011, 7:02 pm
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Default Re: tax's

As a US citizen she will need to declare her worldwide income to the IRS. As UK citizen she may well be liable for UK tax if she is still considered resident for tax purposes by HMRC and if she has UK investments or savings. If she is employed in Sweden then I imagine tax will have to be paid there to. She will have to apply the US/UK, US/Sweden tax treaties and understand how the UK and Swedish systems interact.

As far as the US is concerned she can elect to exclude around $90k a year in income from her taxes or take a credit for the foreign tax paid. she will have to work out which is better. As she will be potentially working with 3 tax regimes professional advice is probably necessary.
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Old Aug 22nd 2011, 12:12 am
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Default Re: tax's

If she needs an accountant I recommend Pete Newton.
www.doug-tax.com.
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