Living in Paris..taxes...residency...blah blah blah

So...
I have an oppertunity to go live and work in Paris. I'd be living in an apartment in the East Suburb. Not in a horrible area, but a close train ride from Paris proper.
All the visa stuff isn't an issue but I have a few questions...
1. I tried to read up on it in the other thread about becomming an expat, but if I was doing freelance work (writing) from Paris would I have to claim it on my US taxes? I certainly wouldn't be making much, no more then 15-25k a year.
2. I would also be working in Paris at a government agency. So would I still have to claim anything? I'd keep a residency in the US (WA State) and a bank account there as well. And since I'm tax retarded should I just say screw it all and just get a good tax man/lady? Or would it really not be that complex?

3. I want to take my dog. He's sorta old, but still kickin. Has anybody ever done this or know of somebody who has? I'm certain i'd have to give him shots and make sure he's not rabid and prove it and all of that...but is it actually a possibility?

4. Lease info...
So this is kinda iffy buuuut...I have a lease here on my apartment in Seattle. It extends until August. I recently lost my job here, but have an oppertunity to move to Paris in the 2-3 months and get visa/job/etc. The oppertunity will still be there in August. But I have to find a job here and keep my rent up until then.
And job prospects arn't so great.
I'd rather take off sooner then later. BUT I dont want to get stuck paying off the rent in Seattle, nor do i want an eviction on my record. Does anybody have any experience with negotiating yourself out of a lease? It's a long shot, but you guys tend to know stuff.

Anyway--any help AT ALL is highly appriciated. I can be rather creative but I'm certainly not good with details and tax information makes my head spin right round baby right round, like a record baby, right round round round...

Also if any of you have ever lived in Paris and have any tips on adjusting that is always appriciated.

I would highly, highly, highly recommend picking up a recent copy of Living and Working in France from Survival Books.

Prisa wrote:1. I tried to read up on it in the other thread about becomming an expat, but if I was doing freelance work (writing) from Paris would I have to claim it on my US taxes? I certainly wouldn't be making much, no more then 15-25k a year.

Claim, yes. (The IRS says you have to report world wide income, no matter where you are or how you earn it, if you are a US citizen. Full stop.) BUT, I don't think you will be paying any US taxes on such a relatively small amount. There are mechanisms to help you, like the Foreign Earned Income exemption and the Foreign Tax Credit. Lots of technicalities with all that. On that note...

Prisa wrote:2. I would also be working in Paris at a government agency. So would I still have to claim anything? I'd keep a residency in the US (WA State) and a bank account there as well. And since I'm tax retarded should I just say screw it all and just get a good tax man/lady? Or would it really not be that complex?

Residency. Hmm. Complex topic. Would France not consider you a resident? What kind of visa would you be on? I've always found residency to be in the eye of the beholder.

If you are a tax retard, then you'll want someone to sort it out for you. (I can recommend mine if you like.)

Prisa wrote:3. I want to take my dog. He's sorta old, but still kickin. Has anybody ever done this or know of somebody who has? I'm certain i'd have to give him shots and make sure he's not rabid and prove it and all of that...but is it actually a possibility?

That's something that would be covered with authority in Living and Working in France

Thanks Stoo--will pick up that book.

So erm..if you could reccomend your tax man I would very much appriciate it. Thank you.

Residency would mean applying for my EU citizenship---I'm not sure if that's how they phrase it. And when I say keep residency in the US...I should have been more clear, I will still keep a viable address and all of that mess. But not nec. legal residency.

Regarding your lease: My first thought is to get somebody to sublet, with everybody getting evicted from their houses more folk are looking for apartments. If your lease agreement specifically forbids you from subletting (some do) then I recommend speaking with your landlord (really talking to your landlord is the best way to go). If you explain your situation and that you want to find a solution that works for you both then I find it really hard to believe that they won't work with you. No landlord is going to insist on keeping a tenant who can't pay the rent. Not only will you not be paying (if you can't find a job in the states) but if you don't move out the landlord can't get somebody new in who CAN pay the rent.

About Frankie: I don't know much about pups immigrating to Europe but I don't think its really that difficult. Read Stoo's book but I have faith you can make it happen without putting Frankie through hell.

Not sure I approve, deary.

Just sayin'.

Then again, haven't been in forever and I am beginning to look more and more like Maurice Chevalier every day!

Okay. So on the Frankie thingy.....as you know, you'll undoubtedly have to get the latest shots/whatevahs and what probably amounts to an "Internantional Health Certificate" for travel purposes. That part's definitely easy. The hurdles would be....

1. The Airline. Depends on their willingness and what they require of you to transport The Frankie. Can The Frankie ride in the cabin with you in a little thingy?.....or is he in steerage? Big difference. (They are thinking about it completely from a liability/lawyer point of view.)

2. The France. Some countries have quarantine requirements (I don't know if France is once of them or not). So if bringing the The Francois would require quaranteening him on arrival for xx number of days while they make sure he isn't rabid or whatever, that would be the big question.

Other than those things off the top of my flat head, I don't see why it wouldn't be possible.

I mean, France used to be civilized, right?

Prisa:
I tried to read up on it in the other thread about becomming an expat, but if I was doing freelance work (writing) from Paris would I have to claim it on my US taxes? I certainly wouldn't be making much, no more then 15-25k a year

Stoo pretty much already covered it. You'll claim the income on your US taxes and then one of two things (and sometimes both) will happen. You'll either be exempt from having to pay any US taxes at all and/or you'll be able to apply the taxes you paid in France toward your US tax liability. Either way you're likely to have little or no US taxes to pay. It's just a lot more paperwork than normal.

Prisa:
I would also be working in Paris at a government agency. So would I still have to claim anything? I'd keep a residency in the US (WA State) and a bank account there as well.

I just want to add that there are really two separate residencies at work. There is being a resident of a country (typically how we'd think of it) and there is also being a resident for tax purposes. Many countries consider you a resident for tax purposes irregardless of your actual residency status if you generate earned income while there and are there longer than 3 months, 6 months, etc. Although, it really does vary per country.

Stoo:
If you are a tax retard, then you'll want someone to sort it out for you. (I can recommend mine if you like.)

If you could PM me your tax man as well, I'd appreciate it. My taxes will get infinitely more complicated this year with the addition of a non-resident, alien wife to the picture.

Not the first Travis wrote:Not sure I approve, deary.

Just sayin'.

You're right. Who wants to live in Paris, and take vacations in places like Barcelona and Berlin when I could live in the drizzly Pacific Northwest.

Cancel it!


Depending on how the next few days go...I have an interview at a pretty good place...I might end up staying here until August. But still, this is all good information to tuck away and store. So thank you, and any other ideas or things you reccomend are always, always appriciated.

And since Frankie (the dog) is lap sized, I'm fairly sure he could fly with us. In steerage would be sorta a deal breaker. 8-10 hours on a flight would be too much for him I think.

Prisa wrote:Residency would mean applying for my EU citizenship---I'm not sure if that's how they phrase it. And when I say keep residency in the US...I should have been more clear, I will still keep a viable address and all of that mess. But not nec. legal residency.

"Residency" is where your 'home' is, although that becomes a fuzzy concept when you start moving around and having multiple flats, etc.

The thing is, bureaucracies all have their own unique, legalistic definitions. Residency is relatively easy to change--you move, you change your residency. (Citizenship is a whole other game which takes years.) Since you will be living in France, they are going to be making an official "you are a resident/you are a temporary-resident/you are not a resident" decision with respect to France's own laws, and will probably be defined by the type of visa you get. You'll probably want to go with that with respect to US stuff.

It's important for more than just taxes and can impact all sorts of things in your life both in the US and France now and in the future: student loan eligibility, parking permit eligibility, local transport pass eligibility, schools for your kids (haha), insurance of all sorts including health care, id cards, drivers license, ability to rent a flat, visas to other countries, setting up utilities, mobile phones, etc.

There are even inbetween statuses like "non-permanent resident".

Ugh...if you make the move, then you are going to learn the hard way...no way around it...I feel your pain....

But, yea...the tax people will sort some of that out for you.

Tax man info on they way to you both.

If your dog is small enough that he can go in a carry-on bag that will fit under the seat in front of you then it shouldn't be too difficult. He'll need to be up on his shots and get the international health certificate. A decent vet in your area should be able to give you the details. Don't wait to find out though as there are time lines involved as to when certain shots need to happen.

If he can't go in the cabin with you then he'll probably fly as excess baggage. It is more expensive, but not as bad as it sounds. The area will be pressurized and climate controlled. Our dog will be making the trip from Ukraine to Chicago in a few months and she'll be traveling as baggage. No matter how hard you push, you can't seem to fit a Doberman under an airplane seat.

Technically[i][/i] as an American citizen you are obliged to file a US tax return every year. And the good news is that the Foreign Earned Income Exemption was raised this year to over $90,000. You will not owe any US income tax if you're only making the income you stated. The qualification for the exemption is: residing outside of the US for 230 days out of 265 days.These days do not need to be in one calendar year. But in order not to be liable for US income tax you have to be really really careful that you do not spend more than 35 days per 365 inside the US.

You will likely not have to pay US taxes even though you are obliged to file a return, but there should be a good chance that you will have to pay French taxes I suspect. Unless of course, your income is under the table.....

Keeping a bank account in the state of WA is a bit risky. Washington has very few consumer protections and the ability of various taxing authorities and lien holders to garnish your wages/bank accounts/assests in WA is much higher than other states. If you could claim permanent residency in Texas you'd be much better off. No state income tax and stringent guidelines for garnishments.

I have no experience moving pets into France in particular, but I have taken cats all over the dammed world~Dear God. For sure the pet would need a health certificate from a vet in WA, logging the pet's shots, particularly rabies. I believe all pets immigrating to the EU need to be microchipped as well. I have never heard of any kind of quarantine restriction for bringing pets into France. Leaving the US with a pet is a breeze, nobody cares. Be sure you make advance arrangements with the airline to get your pet on the same plane with you. If the pet is small enough you might be able to get it in the cabin of the plane in a carrier.

Your lease? That's a problem. Best of all possible worlds would be to sublet. Otherwise you could be screwed out of the rent money until August. And yes, the landlord can go to court in your absence and get a judgement against you for the remainder of the money owed on the lease and have your assets garnished.

So very very sorry to hear that your job has gone kapuski. But this could be a wonderful opportunity to get the hell out of the US at a very good time to be anywhere but here. I'd trade places with you in a nanosecond.

Sophie9 wrote:Keeping a bank account in the state of WA is a bit risky. Washington has very few consumer protections and the ability of various taxing authorities and lien holders to garnish your wages/bank accounts/assests in WA is much higher than other states. If you could claim permanent residency in Texas you'd be much better off. No state income tax and stringent guidelines for garnishments.

What??? 1) This is only something to fret about if one is doing something dodgy in this context. 2) Establishing state residency requires a non-trivial effort, and I don't thing six months in Dallas is on our dear Prisa's agenda; 3) If she's covered under Foreign Earned Income and/or Foreign Tax Credit then there is no reason to even think dodgy thoughts here; 4) She may have other reasons for remaining a WA resident, like voting, school, etc.

There is no reason for Prisa to be concerned with what (keeping her bank account in WA) you are describing as "risky". That's all just a bunch of crazy talk.

Furthermore, there is more to 2555 than what you describe. Prisa has explicitly stated she is not a tax geek. She's not even going to earn that much money. She needs to consult a tax professional. All will be good.

Stoo wrote:

Sophie9 wrote:Keeping a bank account in the state of WA is a bit risky. Washington has very few consumer protections and the ability of various taxing authorities and lien holders to garnish your wages/bank accounts/assests in WA is much higher than other states. If you could claim permanent residency in Texas you'd be much better off. No state income tax and stringent guidelines for garnishments.

What??? 1) This is only something to fret about if one is doing something dodgy in this context. 2) Establishing state residency requires a non-trivial effort, and I don't thing six months in Dallas is on our dear Prisa's agenda; 3) If she's covered under Foreign Earned Income and/or Foreign Tax Credit then there is no reason to even think dodgy thoughts here; 4) She may have other reasons for remaining a WA resident, like voting, school, etc.

There is no reason for Prisa to be concerned with what (keeping her bank account in WA) you are describing as "risky". That's all just a bunch of crazy talk.

Furthermore, there is more to 2555 than what you describe. Prisa has explicitly stated she is not a tax geek. She's not even going to earn that much money. She needs to consult a tax professional. All will be good.

I'm quite sure all will be good, I have no doubt.

Why would you ream me out so? I never claimed to be a genie of IRS tax form 2555. But we did file the Foreign Earned Income Exclusion for years so I have had some experience with it. I have also lived, banked, and owned property in both Washington and Texas and have some familiarity with property and banking protections in both states. Both property and bank accounts are better protected in Texas than Washington, no holds barred.

And it seemed a relevant point in that she may have to skip her lease. In Texas no landlord would be able to touch any kind of personal holdings, real or invested, in the event of default on a consumer contract. The state of Washington has no such protections. It's not crazy talk at all when your bank account gets drained with court order by a lienholder with a judgement for default. I'll say it again, Washington state has very weak consumer protection laws and bank accounts can be easily garnished for consumer debt with a court order.

I'd still rather be in Paris.

Hurray me! I actually secured gainfull employment in this shitty, shitty economy. So I wont have to skip out on the lease! So i'll be around till at least August, which certainly helps me out with planning and securing and vaccinating puppies and all of this.

But regardless of tax information or anything, I appricaite all of your help on this thread! Very much so. Everybody gives me a different perspective that really helps me consider all my options. So thank you thank you thank you!

And feel free to keep advice comming.

Prisa wrote:4. Lease info...

I'd rather take off sooner then later. BUT I dont want to get stuck paying off the rent in Seattle, nor do i want an eviction on my record. Does anybody have any experience with negotiating yourself out of a lease?

hmmmm I have no idea about Seattle and I'm not sure of this info either and I see that you have figured out your lease thing but ... I lived in an apartment in a San Francisco suburb where the county law states that you can legally break a lease with no penalty if you are required to move to a new location due to your new job, provided that the move is a distance of 50 miles or more.

Or something like that... IANAL.

Have fun in Paris.