Working in USA waters while retaining expat tax status

Hi Marcos,

Since as an American you are required to file an Expat Income Tax return in the USA at any rate, even though you are paying taxes on your income in Brazil I don't see that much, if anything is going to change.

There is no Double Taxation Treaty (DTT) between the USA and Brazil and since you are considered a resident of Brazil for tax purposes you pay taxes here as does anyone else. Here your being taxed is based on RESIDENCY.

In the USA you are taxed based on CITIZENSHIP so it is one of the few nations that require taxes be paid even when you no longer reside there.

I really don't see that there is any question about your Brazilian taxes. What I think may be of concern is actually what happens with your expat status in the USA.

Now you get into a complex gray area. Despite the fact you may be working in US Waters, if you are working on a foreign registered ship I would think you are OK. However if you were to put ashore then you've effectively returned to the USA and I don't know the effect of that on your status. I would think none, since people go back home to visit all the time.

What happens on a US registered ship working in US waters may be an entirely different story I don't know. That income might be subjected to double taxation if it is considered US income and even if it is not deemed US income it could be double taxed if it puts you up over the $92,000 foreign income exemption.

Unfortunately, your questions are really so case specific I think you will find that only the IRS can give you any answers.

If you have a specific question about that you should contact the IRS. You might also get further information through the hyperlink below.

http://www.greenbacktaxservices.com/blo … in-brazil/

Cheers,
William James Woodward - Brazil Animator, Expat-blog Team