[jess]

We've been here four months. OH is working in NZ with an IRD # and taxes are coming out. I work via internet for a US company and am still paying witholding on that in the states. I have gotten the name of a good accountant here, and am planning to go talk to him in the new year when I deal with filing in two countries.

My question is... do I need to go see him sooner? Is ther anything I should be doing before we settle up taxes in both countries by the April US deadline and May NZ deadline?

Back in the states we used to fill out a plain 1040 form, very simple return with usually a fairly small amount due. Am I in for some big shocks as far as complications and owing a huge amount in NZ taxes above what I've paid the US for my American earnings?:confused:

I've got the IRS sending me publications for residents overseas, though I doubt I trust myself to understand it all when it arrives...

Thanks for any advice.

[toesonthenose]

Wow! Definitely get some accounting help. Don't wait for the IRS to send you anything, www.irs.gov is a good website and you can find what you need there. Some of the documents are huge! My understanding is that you shouldn't be paying any US withholding on income you are earning in NZ, even from an american company. Your US income tax does not kick in until $80K US, no state income tax applies, and I believe no Social Security or Medicare taxes apply either. But definitely check this out.
Shaun

[jess]

Hi Shaun, Thanks for your advice. I should have pointed out that my income is from a US company with no offices in NZ whatsoever. I make US income, and it's direct deposited into my US account. I don't earn a penny in NZ. I thought that that made the difference as far as who got a cut first.

[Richard_from_Long Beach]

Jess, keep us posted on what you find out. I can't figure out who gets the first cut at taxes in your situation.

For all you Americans in NZ working for NZ employers, is it true that NZ gets the first cut and then for purposes of your US taxes you generally only owe on anything over US$80,000? Does the absence of a state income tax and social security/medicare tax mean your tax burden is lower in NZ than in the US?

[Going2NZ]

NZ and the US have a reciprocal tax agreement which means basically that you won't get taxed on the same money twice. So if you work in NZ you pay only NZ taxes on that income. If you get US income, you should only have to pay US taxes on it. If I remember correctly you have to declare any overseas income but if its one of the countries with an agreement, no tax is taken on the NZ side. However, you probably want to talk to a NZ tax attorney to make sure you have all the details as soon as possible - forewarned is forearmed as they say.

For the US income, they are probably pulling taxes out already. Not sure about the state taxes though since my former state didn't have one. I don't think you ever get out of paying social security/medicare but couldn't swear to it.

Hmmm, not sure I helped or just muddied the waters but maybe it'll make sense.

[montana]

We were living in the US for 2 yrs (I am an American, husband is a kiwi) and we were required to file both places. We had to pay taxes on NZ income and US income respectively (we had some NZ income from property).

Before we moved here I asked the NZ embassy about it and they said generally you do need to file wherever you are a citizen (or permanent resident I believe). So that means even if we are both working and earning in NZ we still file in the US, but are not assessed any tax. I am not sure about the $80,000 threshhold.

I'd recommend having an accountant in both countries to file separate returns if you can.

The embassy was very helpful (I spoke to the one in DC but there is also one in LA. The US consulate in Auckland has also been extremely helpful) and there are a couple of "advisers" on the NZIS website who are also very good. They may be able to point you in the direction of more resources for help.

[voxel]

Holding a Green Card or US citizenship means you will have to "pay taxes" on "worldwide income" - but because of double taxation treaties with NZ you'll probably won't need to pay US taxes.

Most other citizens won't need to file taxes in their country of citizenship if they no longer reside there and have no revenue generated there. Often, there are government forms you fill out telling the government you are no longer a resident, etc..