Thread: worldwide income tax

i am planning on moving to panama in a couple of months. i read somewhere that you still have to pay taxes to the US even though you live in another country. i just want to know if any US citizens that live in panama pay taxes and if you do how much do you pay? for the first year im living in panama i plan on living on savings that i have and also other means...no not anything illegal...im a professional poker player do i still have to claim winnings even though i dont get a W2 from panama casinos? i know i have a lot of questions, i just dont FBI busting down my door lol

thanx in advance

The money you earn in the US -- e.g., interest on your US-based savings accounts -- is subject to US tax no matter where in the world you live. (Btw, the US is virtually the only country in the world that treats its citizens this way.) For state income tax, rules vary from state to state.

Money you earn in Panama from a *regular* job with a Panama company is not subject to US income tax, up to a limit of (I think) $86K/year. It is, however, subject to Panama's income tax, even though you are not a Panamanian citizen.

Now, for gambling income in Panama, I don't know if that's taxable or not, nor do I know how the government here would track it; best to check with a lawyer or CPA in Panama.

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