Going To The US

The land of the free and the home of the brave!

Let’s talk about Paul Hogan:

In 2002-03, the tax advantage lay in telling the US authorities he was coming to Australia permanently; but in 2005, the tax advantage lay in telling the Australian authorities that he came here only temporarily in 2002. Both cannot, however, be the case.

The Australian Crime Commission (ACC)

The issue of tax residency is of paramount importance as to how you are going to be taxed. Dealing with two tax jurisdictions is not easy.

Forewarned is Forearmed

Substantial Presence Test

Under the Substantial Presence Test (SPT), you will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year.

To meet this test, you must be physically present in the United States on at least:

  1. 31 days during the current year, and
  2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
  3. All the days you were present in the current year, and
  4. 1/3 of the days you were present in the first year before the current year, and
  5. 1/6 of the days you were present in the second year before the current year

Tax Questions

Australia

  1. Are you an Australian citizen living in the United States?
  2. Are you coming back to Australia?
  3. Are you a US ex-pat living In Australia?

USA

  1. Do you become a tax resident of the United States?
  2. How will you be taxed in the United States?
  3. Do you have any assets in Australia?