Fragrant Harbour A forum for the large number of pilots (expats and locals) based with the various airlines in Hong Kong. Air Traffic Controllers are also warmly welcomed into the forum.

US Tax question

Old 15th Dec 2019, 23:20
  #21 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 1,552
Received 54 Likes on 34 Posts
I would also pay attention to how much time you spend in the USA each year in total, one or two US flights a month together with an annual holiday could blip the radar for you having a significant presence there. Remember the US government is trillions of dollars in debt and will latch onto anything they think will get them some revenue. The IRS will send out tax returns on a "spray and pray" basis hoping some people will complete them and pay up. Even if you're not liable, the accountants and lawyers fees to prove this will likely exceed the tax due if you were liable.
krismiler is offline  
Old 16th Dec 2019, 05:12
  #22 (permalink)  
LGB
 
Join Date: Feb 2002
Location: -
Posts: 174
Likes: 0
Received 0 Likes on 0 Posts
Crew members. Compensation for services performed by a nonresident alien in connection with the individual's temporary presence in the United States as a regular crew member of a foreign vessel (for example, a boat or ship) engaged in transportation between the United States and a foreign country or U.S. possession is not U.S. source income and is exempt from U.S. tax. This exemption does not apply to compensation for services performed on foreign aircraft.
From http://myattorneyusa.com/storage/upl...for-aliens.pdf

Does any other non-US airline impose the same requirement, for their crews to file US taxes?
LGB is offline  
Old 16th Dec 2019, 07:01
  #23 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 1,552
Received 54 Likes on 34 Posts
2. You perform these services while you are a nonresident alien temporarily present in the United States for a period or periods of not more than a total of 90 days during the tax year.
So two US flights per month and a long holiday there could have you over 90 days so the exemption wouldn't apply, and it looks like it doesn't apply anyway to aircrew.

A day means a calendar day during any part of which you are physically present in the United States.
So arriving at 23:50 on Monday night and leaving at 00:10 on Wednesday morning is 3 days.
krismiler is offline  
Old 16th Dec 2019, 09:19
  #24 (permalink)  
 
Join Date: Oct 2018
Location: Ferrara
Posts: 8,584
Received 383 Likes on 227 Posts
Yes and yes

The rules are really set to give clarity for people who are"tax resident" out of the US (or the UK or Australia) but who still like to visit home as much as they can - so there's a limit. And it has to be simple and clear to avoid endless argument about the definition of a "day"

The people this affects are normally well aware of the restrictions and carefully document their travels for this very reason - plus you avoid being dependent on a specific flight at 23:00 on day 90 in case of weather or cancellation issues.
Asturias56 is offline  
Old 16th Dec 2019, 10:45
  #25 (permalink)  
 
Join Date: Apr 2008
Location: On the road
Posts: 160
Likes: 0
Received 0 Likes on 0 Posts
You don't have to be a rocket scientist to imagine the fireworks when the press get hold of this.

If ever there was a time for a CX manager to step up and say "this was a mistake, please disregard". Now would be that time...
mr did is offline  
Old 16th Dec 2019, 12:03
  #26 (permalink)  
 
Join Date: Jul 2007
Location: www
Posts: 518
Likes: 0
Received 0 Likes on 0 Posts
Well, in the last 25+ years of "mistakes", I have yet to see CX management "step up and admit" it was a mistake (in spite of all evidence to the contrary that is usually woefully apparent). Good luck with that. Some failed bank clerk now working for the CX taxation department has put his/her stamp on this misinterpretation and loss of face will prevent any reversal (well, until the inevitable resulting chaos becomes too much).
Apple Tree Yard is offline  
Old 4th Jan 2020, 18:39
  #27 (permalink)  
 
Join Date: Jul 1999
Location: hongkong
Posts: 401
Likes: 0
Received 1 Like on 1 Post
C1/D visa crews are EXEMPT end of story.
I think they have much more to worry about regarding crews in the USA.
If the claim is now ON SHORE taxation then perhaps they’d like to reinstate social security and Medicare for all the cabin crew they shafted?!!
BlunderBus is offline  
Old 25th Jan 2020, 21:43
  #28 (permalink)  
 
Join Date: Jul 1999
Location: hongkong
Posts: 401
Likes: 0
Received 1 Like on 1 Post
Originally Posted by BlunderBus
C1/D visa crews are EXEMPT end of story.
I think they have much more to worry about regarding crews in the USA.
If the claim is now ON SHORE taxation then perhaps they’d like to reinstate social security and Medicare for all the cabin crew they shafted?!!
I’ll step up and now say that previous quote is incorrect.
the statute was revised 2018 and while seamen are not taxed non resident aircrew are.
but I think the intent is for once us resident alien crew who go overseas and become non resident aliens must still file.
BlunderBus is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.