Leaving US in the mid of the year - TAX responsibility

[mirekti]

I am an EU citizen working in the US, and of course pay the taxes. I got an offer from one of the EU countries and plan on going back to Europe.
I wondered should I be concerned in regards to the tax in the US. For example, if I move to Europe in September, would I need to pay the tax for earnings in Europe in that period Sep-Dec in the US as well? In other words will there be double taxation? Would it be wise to wait till January (not sure if the employer can wait so long)?

Any advices on this topic, please?

[rayb]

Double taxing of earned income can normally be avoided if there is a reciprocal tax treaty between the U.S. and the country in which you earn money, or if you provide proof of income taxes paid in that country.

--Ray B

I am an EU citizen working in the US, and of course pay the taxes. I got an offer from one of the EU countries and plan on going back to Europe.
I wondered should I be concerned in regards to the tax in the US. For example, if I move to Europe in September, would I need to pay the tax for earnings in Europe in that period Sep-Dec in the US as well? In other words will there be double taxation? Would it be wise to wait till January (not sure if the employer can wait so long)?

Any advices on this topic, please?

[inadmissible]

If you are not a lawful permanent resident, you will be "part year non-resident alien". This very forgiving rule only applies to aliens in the tax years in which they arrive and depart the United States.

Even if you are considered a full year resident alien (because of your green card OR because of more convenient filing with a full-year resident spouse), you are entitled to a credit for foreign taxes paid.

In most EU countries, you will be liable for taxes in excess of your United States tax liability, so it will wash out.

[mirekti]

Thanks a lot, this gives me some idea, but I am not 100% sure I got it all. Let me try to explain it a bit more. I am on H1B visa in the US.

I am from a country A, which doesn't have an agreement with the US (country B) about double taxation. I plan on moving to Germany (country C) which has agreement with country B about double taxation.
However, country A has an agreement with country C about double taxation.

I would spend Jan-Sep in country B which means the tax needs to be paid in Countries A and B as there is no double taxation agreement (current company is taking care of this at the moment).
If I move to Country C for period of Sep-Dec will I have to pay something to Country B for that period or because Countries B and C have an agreement I would only pay in Country C, and because C and A have an agreement it would also count from country C which in turn would mean the only country I have to pay tax for period Sep-Dec is country C?

After I read what I've wrote not sure I made it any easier to understand.

[inadmissible]

Most countries do not charge non-resident/non-domiciled citizens on their worldwide income, although the United States does. You'll have to figure out the deal with your home country tax policies, but you may only be chargeable for income taxes on your US source income by the US during Jan-Sep. If you are also indeed chargeable on such income by your home country, you will get a full credit for it on your United States income tax return.


From Sep-Dec you will not be chargeable on your German source income by the United States because you will not be treated as a tax resident of the US.

A comprehensive tax treaty between your home country and Germany will ensure that you are only chargeable by Germany for your German source income, even if you are treated as a tax resident of your home country. That seems like a moot point because you won't be a tax resident of your home country.