Do I owe taxes?

Oct 30 11 Comments

I started a business about 2 years ago. And now it brings a steady profit of about $2k to $2500 every month after I pay employees and expenses. This business is based outside the United States and all the money gets paid into my Lloyds bank, then I do a transfer into my Chase.

Because the business is based outside the US and I am not a US Citizen, I assumed I didn't need to pay taxes on it. But my roommate just pointed out that I could land in trouble with IRS because I do a transfer into my account every other month.

How do I declare this extra income without being in violation of my Visa status?

Cisco TC : 110k
Total TC: $146k

1 YOE

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TOP 11 Comments
  • Amazon / Eng prestige🧐
    I would seek professional advice.

    Listening to Blind will probably just make things worse.
    Oct 30 1
  • Tax accountant here. Generally, If you are on H1B visa or have been in US for over 5 years, you will pay tax on that income thanks to the worldwide system. you can take a foreign tax credit though to mitigate the tax liability. If not, no. You should consider talking to a CPA this 2K a month is a big big audit red flag. AND FBAR to report foreign bank account, also likely but dpending on your situation.
    Oct 30 1
    • OP
      Thank you for your response. I have been in the US for about 3 years in total. Still currently on STEM OPT. Can I send you a DM please?
      Oct 30
  • MathWorks 😊Smile😊
    I think you won’t have to pay taxes on that in US but you will have to report that income to IRS by filling FBAR.
    Oct 30 0
  • PayPal / Other jrjrbehejq
    What’s the business?
    Oct 30 2
    • OP
      It's an educational consulting firm based in 2 West African Countries.
      Oct 30
    • PayPal / Other jrjrbehejq
      Very cool!
      Oct 30
  • Cadence Mariposa
    Ah the $2K extra income story, thanks for clarifying what you do. Sorry you heard so much crap story on that last post
    Oct 30 1
    • OP
      I think you're probably referring to someone else
      Oct 30
  • New matan
    US requires you to declare worldwide income. They will give you credit for any taxes paid elsewhere if there is a treaty with that country.
    Oct 30 0

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