I am a US citizen. My residence is in South Africa (I stay there > 183 days a year). I work exclusively in the US and my salary is paid into a US bank. What is my tax liability in the US and in South Africa? Do US Social Security and Medicare payments have any effect?
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Tax Professional Answers
John Stancil
Since you reside in South Africa for more than 183 days each year, and I presume you have been doing this for more than three years, you are considered a SA resident subject to income tax on your earnings. If less than three years you are considered a temporary resident and not subject to SA tax on income earned elsewhere. You will be eligible for a foreign tax credit in the US for income tax paid to another country. Social Security and Medicare are not affected by your residency.
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405 weeks ago