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Australian pilots can work for US regionals.

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Australian pilots can work for US regionals.

Old 14th Feb 2023, 18:55
  #2701 (permalink)  
 
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If you go the the States and remain an Australian resident for taxation are you taxed on income streams in Australia by the IRS? This isnít an unlikely scenario for many commuters and with new residency legislation before the Senate widening the net. So how does your investment properties and franked share portfolio fair?

Last edited by Gnadenburg; 14th Feb 2023 at 19:40.
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Old 14th Feb 2023, 19:39
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Originally Posted by Gnadenburg
If you go the the States and remain an Australian resident for taxation are you taxed on income streams in Australia by the IRS? This isnít an unlikely scenario for many commuters and with new residency legislation before the Senate widening the net. So how does your investment property and franked share portfolio fair?
My understanding is generally since the tax rates are higher in Australia, you'll likely pay extra Aus tax on any USD earned, but no US tax on AUD earned. I've seen some finance firms that specialize in this listed in the FB groups, but that's the extend of my knowledge about it. I'm sure someone will chime in with more accurate information.
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Old 14th Feb 2023, 19:49
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There seems to many gotchas. Establishing a residency either way is critical and working from there. For those approaching an independently funded retirement it could even become a no-go decision. Every which way you turn there are serious tax implications. Itís not just income streams. Super too. You may have utilised your non-concessionary contributions and brought forward the three years- all
of a sudden the 330K after tax dollars youíve put into Super could be taxed again by the IRS.

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Old 14th Feb 2023, 20:43
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My understanding is generally since the tax rates are higher in Australia, you'll likely pay extra Aus tax on any USD earned, but no US tax on AUD earned. I've seen some finance firms that specialize in this listed in the FB groups, but that's the extend of my knowledge about it. I'm sure someone will chime in with more accurate information.
Be very careful as there are three levels of income tax you have to deal with in the US and then other things like they have simplified tax return systems that don't really allow large claims. They have Federal, State and Payroll taxes to your income which will be based on your domicile, some are quite high others low, just like their GST system. You then have to fund your own medical unless its included in the package and 401k (super) which is employee contributions which may be matched by some companies to boost its value, again read the package. Many other small things that you have to pay for that are a given in Australia, other things are much cheaper.

If you go the the States and remain an Australian resident for taxation are you taxed on income streams in Australia by the IRS?
Pretty sure you only have to pay the Australian taxes, however the downside is that the Australian tax system will probably want its paws on anything you earn in the US as it finds its way back into Australia. That is if you are an Australian for tax purposes that means wherever you earn the money you pay Australian taxes as it comes back to the country. However already paid taxes to the IRS is most likely taken into account. The main issue is if you live in very low tax areas like the middle east, then the ATO will be taking a chunk as the money comes home.

Every year if you are an Australian citizen for tax purposes you will have to declare all income earned, even overseas for your tax return. That's when it gets messy.

From the ATO;

Your foreign income could be subject to double taxation if tax is withheld in the source country. To overcome this, Australia has a system of credits and exemptions and has signed tax treaties with more than 40 countries. This includes all our major trade and investment partners.

Last edited by 43Inches; 14th Feb 2023 at 21:01.
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Old 14th Feb 2023, 20:56
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G'burg and 43, you're both right in that their is a lot to consider re taxes and packages. I'm not a Aus tax resident anymore, so my knowledge in that regard is limited. However my understanding is that super at least is generally untouchable by the IRS. That may change if you withdraw some of it.

Health insurance varies by employer, and there are often different packages with different costs associated depending on what your needs are. For example, I pay $340/month (pre tax) for two adults for a rock solid plan. 401k is a different beast again. It can be a match, where you have to put your own dollars into it, and your employer matches those contributions. Or it could be a direct contribution, which works more or less the same way as super.

In any case, if you're a tax resident in both countries, 43 is on the money and you absolutely need something better than TurboTax's online offering.
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Old 14th Feb 2023, 21:11
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Not 100% sure, but in the case of Super extraction and use in the USA I think you would be fairly safe. Super has tax paid on it on input, so under the treaty you would probably be able to direct transfer the lot with just the Aussie fees involved. But that of course depends how your super works, whether its lump sum or not. I have friends now Australian citizens and residents who received overseas payments for similar things (retirement type funds) and if it was taxed there at some point it's just paid into an account, although most are below the threshold for any real taxation. Best option on large sums is get professional advice, especially if it involves shares and investments outside cash, getting tax wrong is a big no no in the USA. The IRS has legendary powers.
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Old 14th Feb 2023, 22:38
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If you are living and working in the USA you are not an Australian resident for tax purposes.

​​​​​​​Get some professional advice because most of what is written here is incorrect.
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Old 14th Feb 2023, 23:30
  #2708 (permalink)  
 
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If you are living and working in the USA you are not an Australian resident for tax purposes.
Not true if you intend to return to Australia at some point and have Australian assets. If you own a house and it remains your property whether you rent it out or not you will be considered an Australian resident for tax purposes. There is also a factor of how many visits to Australia you make per year, which seems to be if you come back more than twice per year. There is a tool for calculating your Residency status on the link you provided. Entirely agree with getting professional advice though. The original question involved working in the US with income streams from Australia, that's where it gets tricky, having income or assets in Australia with evidence you intend to return at some point.
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Old 15th Feb 2023, 05:18
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Iím very clear on residency and the changes tabled to Parliament. All Iíll say is, donít get burnt by the ATO. Many comments here seem to have no clue on residency complexities.

If you are a pilot flying in the USA, and in Australia you have 300,000 AUD per annum of passive income from property and shares, will the IRS tax you? If you contributed to your Super will they tax you? Yes, you need expert help, however, every tax expert is different. Interested if anyone facing this scenario? Ex-Cathay pilots come to mind who have set up for retirement and canít resist the lure of the States to finish it all off. If you do get taxed it could make going to the States a mistake.
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Old 15th Feb 2023, 05:48
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Been told E3 only attracts tax on income in States not world wide . Interested if this is incorrect . Pay tax to ATO on Australian income in Australia .
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Old 15th Feb 2023, 10:56
  #2711 (permalink)  
 
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Originally Posted by KAPAC
Been told E3 only attracts tax on income in States not world wide . Interested if this is incorrect . Pay tax to ATO on Australian income in Australia .
Nope, if you pass the 183 days in the US Residency Test then you are taxed on world wide income - if you do not pass the 183 days in the US Residency Test, then you still pay taxes in the US, but on US sourced income only.
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Old 20th Feb 2023, 01:08
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Hi,
Just a question as an Aussie about to graduate from a four year Commerce/Aviation (Management) degree from UNSW.
I have no experience flying yet and honestly feel like eventually once I am done with all my training, I will end up living/flying in the US anyways.
Should I just go directly to the US and do my flight training there? It seems as if the demand and opportunity in America is huge, while very little in Australia.
It seems as if the Aussie schools are very expensive anyways, not worth it for what is is and don't offer any kind of guarantee of employment.
As for American schools, I have done my research and found a potentially promising school; Hillsboro Aero Academy. They offer a accelerated course where you can get your CPL, CFII, MEI, etc within a year at a relatively cheap price, offer an F-1 visa (gives you the right to work for 2 years after completing the course) and 99% of their graduates are able to get jobs as instructors, upon graduation. I will possibly be able to get an E3 visa afterwards as well.
Should I move to America straight after my degree and do flight training there, or do my flight training in Australia and move to the states afterwards?
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Old 20th Feb 2023, 18:55
  #2713 (permalink)  
 
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Originally Posted by ofinruzber
Hi,
Just a question as an Aussie about to graduate from a four year Commerce/Aviation (Management) degree from UNSW.
I have no experience flying yet and honestly feel like eventually once I am done with all my training, I will end up living/flying in the US anyways.
Should I just go directly to the US and do my flight training there? It seems as if the demand and opportunity in America is huge, while very little in Australia.
It seems as if the Aussie schools are very expensive anyways, not worth it for what is is and don't offer any kind of guarantee of employment.
As for American schools, I have done my research and found a potentially promising school; Hillsboro Aero Academy. They offer a accelerated course where you can get your CPL, CFII, MEI, etc within a year at a relatively cheap price, offer an F-1 visa (gives you the right to work for 2 years after completing the course) and 99% of their graduates are able to get jobs as instructors, upon graduation. I will possibly be able to get an E3 visa afterwards as well.
Should I move to America straight after my degree and do flight training there, or do my flight training in Australia and move to the states afterwards?
If your plan is to live and work in the US then going to Hillsboro to do your course is a better move than doing it in Australia for sure
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Old 20th Feb 2023, 21:25
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Originally Posted by havick
If your plan is to live and work in the US then going to Hillsboro to do your course is a better move than doing it in Australia for sure
havick,

That's a good point. I saw his post and debated trying to answer it from the Peanut Gallery. So, I waited for someone smarter than I to kick off the responses.

But someone has to play Devil's Advocate so I will:

What if he goes the US route and by the time he gets competitive here for a US E3 job (2 to 3 years ?), the worm turns and it's suddenly not so good here for E3s ? He's then an Aussie with no Aussie license but is faced with trying to fly back home ?

Is it harder to convert an FAA license to CASA than to go from CASA to FAA ? And then, there's the time factor. Quicker employment opportunities here than there ?

It's a puzzle. But, I'm a little bit in your camp of suggesting he takes a run at it up here. When you're young and full of energy and optimism, chances aren't as intimidating.

I wish him luck and hope he tells us what he decided.
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Old 20th Feb 2023, 21:53
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Originally Posted by ofinruzber
Hi,
Just a question as an Aussie about to graduate from a four year Commerce/Aviation (Management) degree from UNSW.
I have no experience flying yet and honestly feel like eventually once I am done with all my training, I will end up living/flying in the US anyways.
Should I just go directly to the US and do my flight training there? It seems as if the demand and opportunity in America is huge, while very little in Australia.
It seems as if the Aussie schools are very expensive anyways, not worth it for what is is and don't offer any kind of guarantee of employment.
As for American schools, I have done my research and found a potentially promising school; Hillsboro Aero Academy. They offer a accelerated course where you can get your CPL, CFII, MEI, etc within a year at a relatively cheap price, offer an F-1 visa (gives you the right to work for 2 years after completing the course) and 99% of their graduates are able to get jobs as instructors, upon graduation. I will possibly be able to get an E3 visa afterwards as well.
Should I move to America straight after my degree and do flight training there, or do my flight training in Australia and move to the states afterwards?
Take the risk and train in the US. That year of working on an F1 will get you started on your hours, and will be invaluable to building your network. The fact that you'll have a bachelor makes you eligible for an E3. It wouldn't be hard to convince a flight school to sponsor you on an E3, because the process is cheap, quick, and you'll be a known quantity. In the meantime, maybe you find yourself a green card, or move on to an airline on an E3, or worst case scenario, go home with a tonne of cool stories and experience. Go for it.
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Old 21st Feb 2023, 00:20
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Originally Posted by ofinruzber
Hi,
Just a question as an Aussie about to graduate from a four year Commerce/Aviation (Management) degree from UNSW.
I have no experience flying yet and honestly feel like eventually once I am done with all my training, I will end up living/flying in the US anyways.
Should I just go directly to the US and do my flight training there? It seems as if the demand and opportunity in America is huge, while very little in Australia.
It seems as if the Aussie schools are very expensive anyways, not worth it for what is is and don't offer any kind of guarantee of employment.
As for American schools, I have done my research and found a potentially promising school; Hillsboro Aero Academy. They offer a accelerated course where you can get your CPL, CFII, MEI, etc within a year at a relatively cheap price, offer an F-1 visa (gives you the right to work for 2 years after completing the course) and 99% of their graduates are able to get jobs as instructors, upon graduation. I will possibly be able to get an E3 visa afterwards as well.
Should I move to America straight after my degree and do flight training there, or do my flight training in Australia and move to the states afterwards?
i would also enter the green card lottery each year.
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Old 21st Feb 2023, 03:26
  #2717 (permalink)  
 
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Thank you everyone for the advice
The only problem I have, is that if I go to the US, I am not able to get any kind of student loan. Ideally, I would like to go to a US flying school straight after graduation, but my current feasible options are to work in Aus for a year and save up before going over or to go to a flying school in Aus straight after graduation.
If anyone is able to come up with any recommendations or opinions it would be much appreciated .
Will also keep everyone up to date with my career progression.
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Old 21st Feb 2023, 11:35
  #2718 (permalink)  
 
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Originally Posted by ofinruzber
Hi,
Just a question as an Aussie about to graduate from a four year Commerce/Aviation (Management) degree from UNSW.
I have no experience flying yet and honestly feel like eventually once I am done with all my training, I will end up living/flying in the US anyways.
Should I just go directly to the US and do my flight training there? It seems as if the demand and opportunity in America is huge, while very little in Australia.
It seems as if the Aussie schools are very expensive anyways, not worth it for what is is and don't offer any kind of guarantee of employment.
As for American schools, I have done my research and found a potentially promising school; Hillsboro Aero Academy. They offer a accelerated course where you can get your CPL, CFII, MEI, etc within a year at a relatively cheap price, offer an F-1 visa (gives you the right to work for 2 years after completing the course) and 99% of their graduates are able to get jobs as instructors, upon graduation. I will possibly be able to get an E3 visa afterwards as well.
Should I move to America straight after my degree and do flight training there, or do my flight training in Australia and move to the states afterwards?
I faced the same dilemna as you when I started training, after a lot of deliberation I ended up deciding to do it in Australia at a non-integrated school. Ended up taking 3.5 years to finish my CPL and I'm still on the job hunt. In hindsight, doing a full time course in the US would have been cheaper and faster. I don't regret training here, but it's been a much slower and more expensive process than I bargained for. If I were in your shoes I'd go to the US. Make sure you research the FAA to CASA conversion process if you ever plan to fly in Australia though.
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Old 21st Feb 2023, 15:40
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I'd probably add that you'd need substantial savings / financial support to it as well. Even if you have enough for the course, you'd likely be too busy to work during it to be able to afford rent, food and beer. Like many of the Australians who have come over here, if you're single, you'll probably have a green card within a couple of years as well.
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Old 27th Feb 2023, 02:44
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Originally Posted by DropYourSocks
My understanding is generally since the tax rates are higher in Australia, you'll likely pay extra Aus tax on any USD earned, but no US tax on AUD earned. I've seen some finance firms that specialize in this listed in the FB groups, but that's the extend of my knowledge about it. I'm sure someone will chime in with more accurate information.
im working in the states at present and have a few rental properties here in Australia as far as I was told by the account I do my tax in the states then I get a tax credit and then do my tax in Australia double whammy effect
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