Hi Friends,
I’m not quite sure if this permutation has been covered here, so here goes.
1. I’m a US Citizen that has lived in Japan on a spouse visa for the last two years.
2. My income derives from US companies, a mixture of payroll and invoicing. When on payroll, I have been able to have the tax withholding removed.
3. As a Japanese tax resident, I first file/pay my taxes to Japan for all income, and then file my US taxes, exempting all owed money through Foreign Earned Income Exclusion or Foreign Tax Credit.
This has worked out so far. The catch is, NOW (early 2024), I will be going back to the states for a few months to work, with income totaling around $80,000. They won’t let me invoice as a sole proprietor. My choices are billing through an LLC or going on payroll. I’m not sure what choice makes more sense. A bit more info, I’ll be working/staying in New York City. I usually use my Florida address when filling out w-4/w-9.
I guess my main question is where is my tax liability on income earned while back to the states? I’m kinda assuming it would be the states, but since I am a Japanese resident I thought maybe otherwise. If my tax liability is to US, perhaps payroll would make the most sense? I’m hoping i can at least claim Florida residency (I have a home address there). I could also create a single member LLC in Florida and bill through that. I do want to avoid any particularly complicated accounting though.
Any advice appreciated!
I’ll hit up my accountants in US and Japan too but, Japan accountants are quite busy at the moment, and US accountants usually have a consultation fee, so going for the free expertise first.
by diffandrep