Do I owe taxes?
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
I would seek professional advice. Listening to Blind will probably just make things worse.
Thank you🙏
Ah the $2K extra income story, thanks for clarifying what you do. Sorry you heard so much crap story on that last post
I think you're probably referring to someone else
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.
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.
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?
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.
What’s the business?
It's an educational consulting firm based in 2 West African Countries.
Very cool!