2 questions: HKU and taxes - help!

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  1. #1

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    2 questions: HKU and taxes - help!

    HI All,

    I am doing some research on an affordable place to live near HKU (salary 25k) - A place will only be needed for a 9month contract so I am not looking to go all out but would like something clean! Any suggestions?! If not near HKU, do you recommend any other locations that have affordable housing given the salary?

    Also, does anyone know about US taxes if you are working for a HK university? Would I have to pay US taxes and HK taxes? I just worry about even being able to save.

    Many thanks!


  2. #2

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    TAXES

    If you are a citizen of USA or green card holder you are liable to Tax on your world income. However there is some special allowance if you are overseas. I am not sure bu close to US$ 80,000/ per annum.
    Housing: Look at Chi Fu in Aberdeen.

    Quote Originally Posted by jrose
    HI All,

    I am doing some research on an affordable place to live near HKU (salary 25k) - A place will only be needed for a 9month contract so I am not looking to go all out but would like something clean! Any suggestions?! If not near HKU, do you recommend any other locations that have affordable housing given the salary?

    Also, does anyone know about US taxes if you are working for a HK university? Would I have to pay US taxes and HK taxes? I just worry about even being able to save.

    Many thanks!

  3. #3

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    All US citizens have to pay taxes on the worldwide income, so basically, yes, you have to pay US taxes.

    However, after you meet some tests, you can exclude from your income unto $95,000 USD and a very large amount for your housing expenses--after you meet the proper tests. This has the effect of many people not owing the US government (or their state government) any income taxes. And yes, many states will still consider you resident for tax purposes if you maintain US bank accounts, driver's license, voting, property, etc.

    Unfortunately, if you are only coming for 9 months, it will rather difficult to meet this test. You'll likely be paying HK taxes and US taxes, though you'll get a small deduction for foreign taxes pay.

    In addition, you need to report if you have any bank account that AT ANY TIME during the year has > $10,000. If you have two accounts that are $5,001 then you also have to report (it's $10,000 in the aggregate at any time during the year). This is called an FBAR.

    IRS Publication 54 is designed for Americans living overseas. Probably worth a look through.

    http://www.irs.gov/pub/irs-pdf/p54.pdf


  4. #4

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    Quote Originally Posted by Oldtimer
    Housing: Look at Chi Fu in Aberdeen.
    I think he'd be looking at paying nearly 50% of his salary in rent. Perhaps Sai Ying Pun, a older building, would be cheaper.

  5. #5

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    Thanks for replying- this is a little dishearting....

    I am not look to loose money on this experience but the project would be awesome to work on. Any suggestions for reallllly affordable housing is welcomed by anyone! Taxes are what is the hardest in this equation.

    Again, thanks everyone and please keep the responses coming! Hope to see you all in HK.


  6. #6
    Mat
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    Quote Originally Posted by jrose
    Thanks for replying- this is a little dishearting....

    I am not look to loose money on this experience but the project would be awesome to work on. Any suggestions for reallllly affordable housing is welcomed by anyone! Taxes are what is the hardest in this equation.

    Again, thanks everyone and please keep the responses coming! Hope to see you all in HK.
    with a 25 k salary ur taxes in hk will be very low. no idea for US.

    housing, the best is probably a flat share. quite easy to find. plenty of ads on this website for example.


    Sent from my GT-I9210 using GeoClicks Mobile

  7. #7

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    Thanks Mat! How can I figure out what HK taxes would be?

    I am looking at City Limits and other semi-service places but I am sure they aren't the best. Think it is worth asking for higher pay. I have a graduate degree and exp.


  8. #8

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    Rent & TAX

    Why not ask the University, if they can provide you with a room in their Hostel?
    HK Tax:You will be working for 9 months: Assuming you start work in September, you will work 7 months till March 2013: So Total income $175,000/ for the financial year ending March 2013. Your allowance about $120,000/ so your taxable income $55,000/ Tax on this would be about $5,000/ Below Tax calculator for salary
    Salaries Tax Computation


    Quote Originally Posted by jrose
    Thanks Mat! How can I figure out what HK taxes would be?

    I am looking at City Limits and other semi-service places but I am sure they aren't the best. Think it is worth asking for higher pay. I have a graduate degree and exp.