For assistance, problems or questions, please email us.
Page History
| Table of Contents |
|---|
Do I need to notify the IRS or the state government for tax purposes when I move to an international location?
...
Once you are Released to Assignment and have moved to your location, Reliant makes note that you are in a foreign location and don't have to pay state taxes.
...
Am I required to pay state taxes?
Since you are no longer residing in one of the 50 states, Reliant does not pay taxes for you. If for any reason you need those paid, you'll need to ask Reliant for that. If you have state tax obligations after you leave the U.S., you may need to attend to those on your own.
- Note, when you return on furlough, we keep you listed as a foreign residence because furlough is a temporary work assignment. It is not a relocation of residence. So, our default is to NOT pay state taxes during furlough. Contact Reliant if you have an obligation that's different from this.
...
Do I have to file my taxes in the U.S.
...
while living
...
overseas?
A U.S. citizen is ALWAYS responsible to report and file their tax returns EACH year, no matter where they live. When residing outside of the U.S., the deadline for filing is June 15.
...
Furlough is a temporary work assignment in the US. It does not constitute a change in residence in most circumstances. Therefore, it does not interrupt "Bona Fide Residence" of someone utilizing the the Foreign Earned Income Exclusion.
IRS form 2555 will ask how many days you worked in the US, and you will need to report that. Technically, earnings for work in the US are taxable; however, due to the standard deduction level, a Reliant missionary rarely owes more tax during a furlough.
...
Can I receive parsonage as an
...
international missionary?
No, the parsonage allowance only relates to Federal Income Tax obligations. If the staff member is participating in Social Security and Medicare, they would still have to pay Social Security and Medicare (15.3% total) on the parsonage which is a portion of their total taxable income.
If you are ordained or commissioned, you may be eligible to receive parsonage.
For many international staff who qualify for the Foreign Earned Income Exclusion, the parsonage does not typically lower their tax liability since the Foreign Earned Income Exclusion exempts them from paying federal income taxes on any earned income under $112,000 (for tax year 2022).
For more information, see Parsonage
401(k) and Reliant
Reliant employees are eligible for the 401(k) plan after one year of service. Employees will be auto-enrolled in the 401(k) plan at the quarterly enrollment date following their one year eligibility date. Reliant does offer an employer match. Reliant matches up to 5% of your eligible wages (salary and bonuses) in a contribution that comes from the MTD account (if you contribute at least that much through payroll deductions). The source of the employer match is from funds raised to the MTD account that funds your ministry (so you have to raise the match). Reliant allows you to choose whether funds contributed from your paycheck are “Pre-Tax” or Roth. The match contribution will always be Pre-tax. There is a conversion process if you want your employer match converted to Roth funds. You can find more information at 401(k) Retirement Plan.
| Note | ||
|---|---|---|
| ||
Reliant encourages all international employees to seek tax counsel regarding IRS ruling 70-491 when determining if the Roth option is something they should utilize for their retirement savings. There may be tax implications of selecting Roth for your retirement funds while filing under the Foreign Earned Income Exclusion to consider and discuss with your tax counsel. |
Who can I talk to for help with tax decisions?
...
| Multiexcerpt | ||||||||
|---|---|---|---|---|---|---|---|---|
| ||||||||
Reliant can not make recommendations about tax decisions, so it is the missionary's responsibility to seek that input from a financial advisor or tax specialist. Below is a tax specialist that other international missionaries with Reliant have consulted:
For information about reimbursing tax services see - Professional Fees. |
...
