Anyone Expert With US/Swiss Tax Treaty?

9682,00.html But it's rather confusing to me and I don't understand it. All this talk of contracting states and other states is very cryptic.

The general rule is that you compute your tax in the US on form 1040, subtract out the tax you paid to Switzerland as the foreign tax credit, and the remainder (if any) is what you owe to the US. You won't get money back if the tax paid to Switzerland is more (ie. the credit is non-refundable), but you can carryforward or carrybackward any excess. However, you get to exclude about 85k of earned income, which basically means salary, on form 2555.

There might be special rules regarding social security, like it's taxable only in Switzerland. The treaty should have all the answers.

Private pensions are subject to tax by the state in which you are a resident. Private pensions are subject to the savings clause in the tax treaty. Therefore, the US will tax your US pension as you are a US citizen. If you become a resident of the Swiss Confederation, they will also tax you. The US will allow you to compute a foreign tax credit to avoid double taxation.

Social Security benefits from the US to a US citizen residing in the Swiss Confederation are also subject to the savings clause and will be taxed by the US if SSA benefits are subject to US tax under US tax law. If you become a resident of the Swiss Confederation, they will also tax your SSA benefits. The US will allow you to compute a foreign tax credit to avoid double taxation.

A person is deemed resident in Switzerland if he has Swiss employment (to work in Switzerland a non-national needs a work permit - limited work permits of 90-120 days can be granted and where granted lead to limited taxation); OR you carry on a business in Switzerland; OR you live in Switzerland for not less

180 days in any one year. If you remain in the same abode the time required to be a resident for tax purposes drops to 90 days.

I hate to derail this topic but I just posted another post regarding this and am waiting to the mod to approve. I moved to Switzerland from Texas on July 1. I have taken a permanent position in Zürich and do not plan on moving back to the US any time soon. I do not plan on giving up my citizenship. As far a I know, I do not count as a bona fide foreign resident yet as I have not been here a full year. I paid US taxes through June. I have been paying Swiss taxes since July 1. Am I able to deduct the Swiss taxes from my US taxes? Or will I be doubly taxed on those 6 months? Everything I've read speaks of "bona fide" and "presence", but I can't seem to find an answer to this. I've lived in the same place since August, so does that mean I can deduct my Swiss taxes from my US taxes?

Thanks a million. My other other post will be popping up soon. Again, don't mean to derail, but I couldn't help myself.

Ben..