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Tax Season - USA and Singapore Compared

It is tax season again. For 2005 tax, it is a little bit challenging for us. We moved from USA to Singapore last April. Now we need prepare tax for both USA and Singapore. Luckily everything is online now.

USA tax schema is whithhold-first-refund-back. The federal and state taxes are not cheap, around 25-30%. If you plan to stay and retire there, maybe it is not bad. You can get it back with SSN and medical welfare. Otherwise, it is just like throwing crispy dollars bills into water.

Since you want to get tax back as much as possible, and the whole procedure is very complex, it is good to hire some H&R Block professionals or buy a copy of TurboTax software for it. The small service fee can be very rewarding in turn.

Singapore tax schema is more reasonable. You pay the tax based on your income. The e-file system is well done. Many companies actually report the employee's income directly into the system. The whole procedure is simple and straightforward. There are no such options like resident, non-resident, married fill jointly, married fill seperately, and so on so forth. Everyone claims the tax on her/his own, and relief options are well defined.

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