More money, less taxBy
Increase income and decrease taxes at the same time. Runs contrary to normal thinking, right? We are raised on the notion that, at least for working class Americans, our taxes must increase as our income increases. That may be the case for many Americans, but for the relatively few that work overseas, taxes can be much less than for an equivalent income earned in the USA. It is entirely possible that a profession in the US, when performed overseas, will result in double the pay, and less than half the taxes.
While there are some overseas workers that are subject to full US tax liabilities, many positions overseas that must be filled by Americans have great tax breaks. When seeking a position overseas, it is a good idea to check with others that are already out there working in the wider world to find out how much US income tax they are required to pay. Because the compensation available overseas is generally much higher than in the US, taxes should not be the deciding factor when weighing options, but it is good to know before you go. One way to find out what others are paying is to ask the folks that use the diplocon website to keep in touch with the wider world OCONUS. Click on “Start your own thread” in the” Know before you go category” and leave a comment/question, then watch for a reply in the following days.