«U.S. taxes won’t effect me, right?» «Of course, they do!» Auntie SAM über die Steuerpflicht für US-Expats – und andere wichtige Lebenserfahrungen.
Dear Auntie SAM: [Big Pharma] tells me that because I’ll pay Swiss taxes, I will not owe any taxes to the U.S. Is this true?
When I was 13, my parents didn’t like my best friend. My Mom found her rebellious & untrustworthy. And while my Dad thought she was OK as a person, he resented her influence: she introduced me to pop music.
Up until her, I spent my time with sweet girls & listened only to music my father approved: The Beatles, Pink Floyd, & Jethro Tull.
After her, I cut my hair short, challenged authority, & fell head over heels for a bass player in a Eurotrash band who wore more makeup than I ever would. In my lifetime.
Our associates tell us a lot about ourselves … & our futures.
Abroad, U.S. citizens & greencard holders still must file & pay taxes to the States. The U.S. of A. & Eritrea are the only two countries to tax on worldwide income.
Additionally, we must report interests in financial accounts whose aggregate at any point in the year amount to ten grand (the FBAR).
Failure to do either results in penalties, with interest, & potential jail.
When I was a kid, ten grand sounded like a lot of money. And it was. When I was a kid, is when the cap was set. So, now that incomes & the cost of living have risen but the law has remained the same, the effect is that more „average earning people“ become potential criminals.
And the cost to prepare a return & FBAR here? Much higher than one might expect.
Additionally, Swiss pensions are not deductible. The same for Swiss healthcare. And, as most of us will rent here (not have a mortgage), housing payments. So you’ll pay income tax on the amounts you & your employer will pay for each as if you had the cost of each in your pocket.
And there’s so much more …
Poor Americans. I’ll sweetly play my violin for us.
Except: we’re not alone.
The thing about life abroad is that, for most Europeans, moving from country to country is much like moving from state to state in America. You just do it.
As such, friends come & go. People accept jobs for adventure. Children are born in foreign lands without a thought to taxes.
Quel dommage !
Around the same time I hung out with that girl my parents disliked, I loved James Bond films. So much glamour. So much steeliness. So many Swiss bank accounts.
The little girl I was in Amish country so admired the fortitude of Swiss banks.
Despite the darknesses. Maybe because; good & evil are carved from the same stone.
But now, much like a pop song that gets stuck on repeat in one’s head – or a slippery eel smiling through coral – capitalism has weakened Swiss fortresses. Allowed a swimmer to cross the moat.
And now all you children born in America; the babies of Swiss & Big Pharma alike: owe Uncle SAM. Big time.
Such is the American way.
Before you come here, before you leave, consult a tax preparer. I know it’s nerdy. Not a hint of glam.
But, darling, with the money you’ll save doing that, you can buy a thousand martinis … even in Switzerland. Trust me.
XO
AS
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June 15th is the filing deadline for US TAXES (June 30th is the recieving deadline for FBARs).
SUNDAY: Pop in to the EXPAT EXPO at CONGRESS CENTER near MESSEPLATZ. More than 100 exhibitors from all over Switzerland will be on hand to HELP YOU THRIVE. 11 AM – 5 PM. FREE.
& JUNE 17 – 20: attend the I NEVER READ ART BOOK FAIR at KASERNE. ART BOOKS, LECTURES, & SO MUCH MORE. http://www.ineverread.com/ FREE.