USA Double Taxes and S$58k Salary

[Researcher]

Hey there,

I'm a single American, 29, and was offered S$58,000 a year to work as a researcher at NUS. Minus my student loan payments, that comes out to about S$3,900 a month.

What is the situation with double taxes and the US, does anyone know? And is S$3,900 a month good enough to live on (that is without taxes taken out)?

Thanks for any advice!

[tax]

It depends on your total compensation. My understanding of it is you get a US$90K exemption. You should be well within the clear.

[Ex-Calif]

You will need to file a US tax return to qualify for the Foreign Earned Income Exclusion.  $58,000 falls well below the threshold so you should be OK.  However any other benefit, home leave tickets, housing subsidy or any other benefit may count towards the exclusion.

As I posted in reply to your other post S$3,900 is very tight and in my opinion you will have to have roomates to be able to make it.

[Kiwi 2]

NUS has subsidised housing don't they? Will you get that?

[doo77]

Also, you need to bare in mind that your exclusion will be prorated if you arrive part year through the tax year.

[Researcher]

Hmm, I'm checking on the NUS subsidized housing situation. I'm assuming I don't get that, because HR didn't mention anything to me about that, as part of the deal. In fact they sent me a list of links to help find housing elsewhere.

What does that mean, "prorated", if I arrive partway through the year - that means I pay less taxes, right? Like, I don't have to pay for this entire Fiscal Year 07-08, but only part of it?

[tax]

"What does that mean, "prorated", if I arrive partway through the year - that means I pay less taxes, right? Like, I don't have to pay for this entire Fiscal Year 07-08, but only part of it?"


Yes. Lets say you made $15K in the first 6 months of the year and the second 6 months your income was derived from foreign earned income.

In essence you should only have to pay US taxes at the regular rate on the $15K you earned while living and working in the US.

[tax]

And next year if you are living outside the US for pretty much the entire time and have foreign earned income...

Lets say you claim US$50k foreign income. Essentially you get a US$90K exemption which covers (in this example) your entire income.

You still need to file, but you should not owe anything.

[JMG]

It depends on your total compensation. My understanding of it is you get a US$90K exemption.

So, earned income up to US$90K is exempt from US taxes for Yanks. To what extent is treated differently from cash bonuses?  Additionally, what's the tax rate for a Yank's first US$90K in Singapore? Thanks in advance for any knowledgeable insight.

[BillDirt]

It depends on your total compensation. My understanding of it is you get a US$90K exemption.

So, earned income up to US$90K is exempt from US taxes for Yanks. To what extent is treated differently from cash bonuses?  Additionally, what's the tax rate for a Yank's first US$90K in Singapore? Thanks in advance for any knowledgeable insight.

Do Americans consider being referred to as "Yanks" derogatory? Just curious.

[FBDinNJ]

Derogatory?  No.  Annoying?  Certainly.  I've never heard anyone use the term "Yanks" in America.  It is usually only people from Europe or Oz/NZ.

I attended classes at NUS, and all of the foreign teachers I knew had housing provided to them by NUS.  I don't know why you wouldn't be eligible for this.  Perhaps because you will be doing research instead of teaching?

[tax]

To JMG

"So, earned income up to US$90K is exempt from US taxes for Yanks. To what extent is treated differently from cash bonuses? "

There is no distinction. Any pay is pay. If it all adds up to US$90K and its all earned while you reside outside of the US...in effect you have no tax liability.

"Additionally, what's the tax rate for a Yank's first US$90K in Singapore? Thanks in advance for any knowledgeable insight. "

US$90K if my understanding is correct, you would owe somewhere around 15% (roughly) to the Singapore government. Other than that, Nada. Theoretically you would only owe the Singapore govt and not the US, assuming you meet all the requirements for the foreign income exclusion...

[tax]

On your last question, if you earn say US$150K... you get a deduction for US$90K.... and you then are taxed at the rates of US$60K...

You are getting into some complex stuff though so I will stop now. There are too many variables to be accurate.

There are a lot of rules in respect to taxes in the US and I won't pretend to know them all or even a majority of them.

[Researcher]

Yeah, unfortunately I don't get subsidized housing as I am not a teacher. And even though I will be doing heavy research, apparently my position falls under some "administrative staff" category, which disqualifies me from the housing. In any case that is what NUS has just told me. Oh well.

I am also happy to see that taxation is around 15% in Singapore, for my income tax bracket? That means that with a US$42,000 annual salary here in New York and taxes of about 25-30%, I am earning about the same thing in Singapore, plus a little more as I won't have my expensive car insurance payments here in the US (I won't have a car in S'pore).

And no, I don't think "Yank" is a derogatory term at all. I suppose like all words, if you said it while spitting on me or insulting me, then it would be derogatory. Lol.

[to BillDirt]

A minority of Americans living in the deep south (eg the Carolinas, Alabama, Mississippi etc) do find the term Yankee deragatory because they use the term to refer to people from the Northern States.  Northern States = those states that fought on the union side during the American Civil War.  Such people identify themselves as being from the South, and do get offended if you imply they are from north of the Mason Dixon line.

Most Ameericans don't give a flip one way or the other.  The term Yank is rarely used within the US.  (Unless you are one of those pesky Southeners who doesn't like those Northern Yankees.)