Gringoes.com: FGTS and Repatriating to US

Message

   Does anyone know how FGTS is taxed when it is received in Brasil because of a lay-off?  If it is taxed, then I assume I wouldn't owe taxes again via "worldwide income" to the US.  

However, if it is tax-free in Brasil, then would we owe taxes to the US based on it being "worldwide income"?

Author	Message
Boots Newbie Joined: 29 January 2011 Location: Brazil Online Status: Offline Posts: 20	Topic: FGTS and Repatriating to US Posted: 16 July 2012 at 14:04
	Does anyone know how FGTS is taxed when it is received in Brasil because of a lay-off? If it is taxed, then I assume I wouldn't owe taxes again via "worldwide income" to the US. However, if it is tax-free in Brasil, then would we owe taxes to the US based on it being "worldwide income"?

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sven Gringoes.com Guru Joined: 14 March 2007 Location: Brazil Online Status: Offline Posts: 12777	Posted: 16 July 2012 at 15:09
	AFIK it's "insento" and when you do a saque, the next year you should put the value under "rendimentos insento de IR".
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Boots Newbie Joined: 29 January 2011 Location: Brazil Online Status: Offline Posts: 20	Posted: 17 July 2012 at 12:32
	Thank you for the reply. So, I understand that to mean it's tax exempt in Brasil. Do you have any idea how the US views this topic? I have a feeling there won't be a blank on my TurboTax next April asking about FGTS money received
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