Working for a US company as a US citizen in Brazil

Last activity 06 August 2021 by Texanbrazil

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dtqMember31 July 2021 01:25:38

Hi!

I'm a US/Brazil citizen but have lived in Brazil my whole life. I never had to pay income taxes in the US, which apparently is a whole thing, because I never made enough to go over the threshold. An opportunity came up to work at a US company making considerably more than I do now, but I wanted to understand how that would be set up. If I'm an employee at a US company, will I pay taxes in both the US and Brazil? Am I able to take the income here in Brazil as a PJ? Will taxes be withheld from my paycheck even if I'm able to offset them with a Foreign Earned Income Exclusion?

Any sort of help would be amazing. If someone knows an accountant who would be able to help me with both countries that would be awesome too, because I struggle to think of someone who would know the laws in both countries and give me the best possible option.

TexanbrazilBrazil Advisor31 July 2021 13:38:21

2744

dtg,
Yes, you will have to pay taxes in each country where it was earned.
The US company will withhold SS taxes and other taxes. At the end of the year, you will receive a 1099 form from your employer and they report the same information to the IRS.
I am not sure as to State taxes in which your employer resides or if you have a US mailing address. (I recommend such and set it up in a State which does not have a state income tax. Fl, TX, NV, and others.)
Any income in BR would be taxed in BR.
The US and BR do not have a tax treaty, so this discussion would better come from a tax advisor in BR.
I do not have any foreign income so do not report such or use the exclusion.
Many questions can be answered on the IRS web page, plus instructions for each form.
I do not believe the employer can send money to brasil, but ask the HR dept.

CakinatorActive member04 August 2021 10:47:50

If you are an actual employee you would receive a W2 at the end of the year. 1099s are for contractors. I do know an accountant who specializes in US taxes for Americans living abroad. Onlinetaxman.com. You can reach out to them. I am a bookkeeper so I know the topic generally. If you are living outside of the US, I am not sure how the foreign earned income exclusion works with an employer. Id assume if the arrangement exists taxes might be withheld and then figured in on your return? Or maybe you can say you are not subject to withholding? Payroll isn't my favorite thing, lol

My friend also has a book, lol This is the second post I've mentioned this. I'm really not advertising for him. Haha. https://www.amazon.com/US-Taxes-America … s=vincenzo villamena&qid=1628072633&sr=8-5

abthreeBrazil expert06 August 2021 13:33:22

5890

08/06/21

Cakinator wrote:
My friend also has a book, lol This is the second post I've mentioned this. I'm really not advertising for him. Haha. https://www.amazon.com/US-Taxes-America … s=vincenzo villamena&qid=1628072633&sr=8-5

Cakinator,

Thanks for the recommendation. I downloaded this book to my Kindle (my US Kindle; I don't know whether it's available on my Brazilian Kindle), and it's full of useful general information for expats from the US, or for anyone considering becoming an expat.

TexanbrazilBrazil Advisor06 August 2021 14:29:54

2744

"If you are an actual employee you would receive a W2 at the end of the year. 1099s are for contractors."

Not always true. 1099 for other types of interest and retirement withdrawal 1099R

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