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MysKay

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    MysKay reacted to acgmph in Working for Dutch company from home(in US) while waiting for working permit   
    This is the argument that lawyers made pretty clear for me, and as I said in previous posts related to this topic: it is an intertwined legal issue with immigration on one side, and taxes on the other. To summarize I will say this: because you become a US tax resident as soon as you land (on IR1 or K1) you have to declare to the IRS all your income for the year (e.g. if you move to the US any part of the year, you have to file US tax return for that year). For part of the income for the year (the part that is realized outside of the USA) you will file 2555 or 2555EZ (Foreign Earned Income Exclusion - if you qualify under the bonafide resident test OR physical presence test), and for the part you realize while in the US you will be taxed by the US government (it doesn't matter who employed you, where you were paid, in what currency, and even if you worked from home.) Now, because you don't have an EAD, but you had income while you are US tax resident (irrespective of where the money came from, in which bank account, and even if you work from home), you would be in violation of the immigration act.
    To answer OP's question: you can only do this until Dec 31 because moving from a tax treaty country (The Netherlands has a tax treaty with the US) in the last 90 days of the year, you are still a Dutch tax resident until Dec 31st and can satisfy both requirements for 2555 and 2555EZ (physical presence test OR bonafide resident test). Come Jan 1st, you will be a US tax resident.
    As you probably know, US tax laws are very strict, meaning that even if you move out of the country, you still have to file tax returns and pay US taxes (LPR or USC). So it should come as no surprise that you cannot work from home for a foreign company while on US soil while maintaining your foreign employment contract and getting paid in a foreign bank account in a foreign currency - remember: the US has tax treaties with many countries, and those countries will report to the IRS all your income and bank account information, with or without your approval.
    To the poster that said that coming on holiday and working means you need to pay taxes: incorrect, because you are a bonafide tax resident of another country when you're on holiday and working from here. Same with B1 visa. Tourist visas do not count for tax purposes - because you cannot legally work with one of those while in the US.
    Now... getting caught is another thing - do what you will on your own risk. I have given you the legal perspective discussed with lawyers from Fragomen.
    I am waiting for my EAD and binge watching Netflix. Not ideal, but not too bad...
  2. Like
    MysKay reacted to Essiej in August 2015 K-1 Filers [merged topics]   
    Ai, u don't have NOA1 yet either?
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