taxation on income earned in usa

mrsqeez

Hi, i have started consulting for a company in the usa and they are paying me monthly into a usa bank account

i also have a regular job here in ireland which pays into my irish account

so my question is do i add the usa income to my irish income and pay tax on the total amount or is the usa wages taxed separately?

Squall Leonhart

If you're being paid by a US company into a US bank account, wouldn't you owe tax to the US for that, and not Ireland?

mrsqeez

i really dont know, that why im asking

i hate the thoughts of getting roasted here when i didnt realise i owed money

Speedwell

How many days per year do you spend in the US? The answer is important in determining whether you are considered "resident for tax purposes" in the US and therefore owe US income tax.

Do you have US citizenship, a residency visa, a work visa, or some other residency permission, or not?

mrsqeez

Hi speedwell

i only spend about 30 days a year over there at the moment , however i have applied for a visa

Speedwell

mrsqeez wrote: »

Hi speedwell

i only spend about 30 days a year over there at the moment , however i have applied for a visa

OK, go over this page http://www.form1040nr.com/residencystatus.php. Also consult a qualified US tax accountant with expat experience (look for one with experience in immigrant and expat tax matters; ask around in your industry and in multinational corporations).

By the way, unless you already have a work visa or are otherwise legally eligible to do work in the US, you should not be getting paid US dollars into a US bank account by a US-based company (as opposed to, for instance, being paid in GBP into an Irish bank account by a subsidiary based in the EU), and the fact that you are doing so now might compromise any US visa you are to be applying for. Even if you are your own corporation in Ireland, like you might be if you are a contractor, you must not "work" without specific permission at any time you are in the US, except for things like attending training, conferences, or business meetings. "Lawyer up", as they say in Texas.

BoatMad

if you are being paid directly in the US , then you will have to pay US tax, you will clearly not be regarded as resident for tax purposes, ( with 30 days ) ( which would in effect tax your world wide income !!) , you will have to fill in form Form 1040NR etc and calculate tax liability

Note that this would apply apply in effect if you are self employed, if your consultancy business is wrapped up in an Irish based company ( which almost everyone now is in) , then tax would only be due in ireland

from memory , a double taxation agreement exists , so that any tax paid in the USA can be offset against total tax calculated in ireland , otherwise you would in fact pay tax twice on that income ( since you remain tax resident in ireland ) I could be wrong on this as its been a while since I dealt with this type of situation ( as a person not dissimilar to you )

of course seek proper advice

mrsqeez

thanks guys

JoeSoaped

Hi,

I assume your an Irish citizen, resident, ordinarily resident(resident for the past three years) and domiciled in Ireland which means you are taxable on your Worldwide gains, you will have to declare your income from the USA, you can gain a credit for tax paid in the US thanks to Ireland double taxation agreement with the States. All the best.