Foreign Taxes Paid

[Capt. Lee]

I recently reviewed my pay stubs and the last one of the year was foreign taxes paid on my behalf by the company. It adds to my gross income, but is deducted fully as a tax. I have e-mailed my payroll about this and am awaiting a response. Does anyone here have any information or experience with this? I wasn't expecting this with Mexico until the end of this tax year. It looks like I can use this as a tax credit against my US taxes paid or a line item deduction. All information is appreciated.

[c.captain]

On the MAERSK DEVELOPER, Maersk Drilling paid the US taxes for the foreign nationals but made the US crew pay their own...one of many reasons I wanted no further part of their way of operating. Great rig but Americans to them were a necessary evil that they (Maersk) had to tolerate or at least that cetainly was the impression I got. Maybe things are better now 2 years later.

In any event, if the employer pays the taxes for the crewmember but they are reported as having been paid by the crewmember from his earnings, then they can be deducted from the taxes owed by the crewmember in his home country. This is why so many ferners like to work in the GoM...they end up not paying much in taxes to anybody. The same my work for you for taxes paid to Mexico on your behalf though.


on a seperate note: A big woo hoo to this old ornery SOB...1000 posts anda many more to come!
.

[Capt. Lee]

On the MAERSK DEVELOPER, Maersk Drilling paid the US taxes for the foreign nationals but made the US crew pay their own...one of many reasons I wanted no further part of their way of operating. Great rig but Americans to them were a necessary evil that they had to tolerate. Maybe things are better not 2 years later.

In any event, if the employer pays the taxes for the crewmember but they are reported as having been paid by the crewmember from his earnings, then they can be deducted from the taxes owed by the crewmember in his home country. This is why so many ferners like to work in the GoM...they end up not paying much in taxes to anybody. The same my work for you for taxes paid to Mexico on your behalf though.


on a seperate note: A big woo hoo to this old ornery SOB...1000 posts anda many more to come!


.

Dang!!! You beat me and in less time. I used to have so much to say and so much time to say it.....I guess nothing lasts forever.

[NAUTICART]

On the MAERSK DEVELOPER, Maersk Drilling paid the US taxes for the foreign nationals but made the US crew pay their own...one of many reasons I wanted no further part of their way of operating. Great rig but Americans to them were a necessary evil that they (Maersk) had to tolerate or at least that cetainly was the impression I got. Maybe things are better now 2 years later.

In any event, if the employer pays the taxes for the crewmember but they are reported as having been paid by the crewmember from his earnings, then they can be deducted from the taxes owed by the crewmember in his home country. This is why so many ferners <----------------"Ferners" you crack me up like to work in the GoM...they end up not paying much in taxes to anybody. The same my work for you for taxes paid to Mexico on your behalf though.


on a seperate note: A big woo hoo to this old ornery SOB <--------- Oh and your not old! ...1000 posts anda many more to come!
.

We wouldn't think of missing it.

[anchorman]

I recently reviewed my pay stubs and the last one of the year was foreign taxes paid on my behalf by the company. It adds to my gross income, but is deducted fully as a tax. I have e-mailed my payroll about this and am awaiting a response. Does anyone here have any information or experience with this? I wasn't expecting this with Mexico until the end of this tax year. It looks like I can use this as a tax credit against my US taxes paid or a line item deduction. All information is appreciated.

You do not pay taxes on that income since the income itself is a foreign tax - you don't see any of it. It seems to me to be a wash, but I'm no accountant.....you are not liable for additional taxes on that gross as they are paid by the company to Mexico. Let me know what kind of benefit there may be, if any. I'm curious. We do the same for Brazil, but we just got there.

[cmakin]

On the MAERSK DEVELOPER, Maersk Drilling paid the US taxes for the foreign nationals but made the US crew pay their own...one of many reasons I wanted no further part of their way of operating. Great rig but Americans to them were a necessary evil that they (Maersk) had to tolerate or at least that cetainly was the impression I got. Maybe things are better now 2 years later.

In any event, if the employer pays the taxes for the crewmember but they are reported as having been paid by the crewmember from his earnings, then they can be deducted from the taxes owed by the crewmember in his home country. This is why so many ferners like to work in the GoM...they end up not paying much in taxes to anybody. The same my work for you for taxes paid to Mexico on your behalf though.


on a seperate note: A big woo hoo to this old ornery SOB...1000 posts anda many more to come!
.

I am not so sure that a company CAN pay one's US taxes if the employees are US citizens. The tax paid would be additional income and then subject to further tax. Then again, it is probably a question better answered by a tax consultant/lawyer. I can't presume to know how other nationalities look at their citizens having ex pat taxes paid by an employer. I would guess that each country would have different laws.

[c.captain]

I am not so sure that a company CAN pay one's US taxes if the employees are US citizens. The tax paid would be additional income and then subject to further tax. Then again, it is probably a question better answered by a tax consultant/lawyer. I can't presume to know how other nationalities look at their citizens having ex pat taxes paid by an employer. I would guess that each country would have different laws.

a foreign national mariner working on the OCS owes US Federal Income Tax if he has more than 182 days of employment in the US. Guess how many work 182 or less? Another effing loophole to make it easy for American mariners to get screwed by our own government!

[c.captain]

Oh and your not old! ...

You're as old as you think and in my mind I'm 75 and have hair growing out of my ears long enough to braid and tie little pink bows onto ;-)

[NAUTICART]

You're as old as you think and in my mind I'm 75 and have hair growing out of my ears long enough to braid and tie little pink bows onto ;-)

Your missing the part I didn't contradict....

[Capt.Felix]

You're as old as you think and in my mind I'm 75 and have hair growing out of my ears long enough to braid and tie little pink bows onto ;-)

Funniest thing ive heard all day !!

[cmakin]

a foreign national mariner working on the OCS owes US Federal Income Tax if he has more than 182 days of employment in the US. Guess how many work 182 or less? Another effing loophole to make it easy for American mariners to get screwed by our own government!

I am not saying that they don't, however I believe that an employer can pay those taxes, or at least reimburse the ex pat; although I don't believe that they can legally do the same for a US citizen. Much the same as when a US citizen works overseas, especially for a long period of time. I believe one must work overseas for over 18 months to not have any US tax liability.

[injunear]

I believe one must work overseas for over 18 months to not have any US tax liability.

That's was the rule up until mid to late '70s. Then a couple of years later it was 1 year with an income cap. Income over the cap was taxable. There's been many changes since.

[tengineer]

I recently reviewed my pay stubs and the last one of the year was foreign taxes paid on my behalf by the company. It adds to my gross income, but is deducted fully as a tax. I have e-mailed my payroll about this and am awaiting a response. Does anyone here have any information or experience with this? I wasn't expecting this with Mexico until the end of this tax year. It looks like I can use this as a tax credit against my US taxes paid or a line item deduction. All information is appreciated.

Some of the drilling companies send out a letter to their employees stating the foreign tax paid on the employee's behalf. Some people use this as a foreign income tax deduction which is dollar per dollar off your federal tax. Don't ask me if it's legal [since the employee didn't pay the tax ] but it is done.
Talk to your tax person and see if they think it'll fly. Some do, some don't.
Tengineer

[Capt.Felix]

Some of the drilling companies send out a letter to their employees stating the foreign tax paid on the employee's behalf. Some people use this as a foreign income tax deduction which is dollar per dollar off your federal tax. Don't ask me if it's legal [since the employee didn't pay the tax ] but it is done.
Talk to your tax person and see if they think it'll fly. Some do, some don't.
Tengineer

Just seems shady to me, more loop holes.

[SallyBlackerf]

I believe one must work overseas for over 18 months to not have any US tax liability.