Job Discussion Forums

rxfaith · Joined: 26 Jul 2007 Posts: 71

i understand all compensation in saudi is tax free, but i've been told by someone that you still have to file taxes in the US if your working in saudi....anyone know anything about this?

MIKEBUCHAN · Joined: 18 Mar 2007 Posts: 106 Location: Russia

rxfaith -

If you have ever filed any tax forms in the states - you will file every year from then on!

Do you have a tax accountant? If you do, they will be able to tell you exactly what you must do!

Mike

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

It is really very easy to file the taxes yourself. You can purchase a Turbo Tax program for $40 (or whatever) online and do it yourself. You need only read and answer questions.

US tax law states that every American must file a tax return every year unless they earn a pittance. (and I would still do it) For 2006 the first $82,400 was exempt from taxes which pretty much covers all of us in the teaching business.

The first year is the complicated one and you might want to get some help for it, but after that it is dead easy. (unless you have major investment transactions, rental property, and such) There is a special form and extension needed to exempt the income for your first year abroad - the usual August-Dec period.

If you do a search here, this topic comes up regularly in the General Middle East section and probably around the whole board.

VS

scot47 · Joined: 10 Jan 2003 Posts: 15343

Gordon Brown in London has talked about going down the same road - taxing citizens outside the UK. Yuk !

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

We are not taxed... we merely have to file. Very few teachers make enough money to actually be taxed. Laughing

Let's hope Mr Brown picks up on that detail...

VS

Chailocks · Joined: 29 Jul 2010 Posts: 47

Grendal · Posted: Mon Sep 27, 2010 12:38 am Post subject:

trapezius · Posted: Mon Sep 27, 2010 12:51 am Post subject:

It pays to read the thread!

Grendal · Posted: Mon Sep 27, 2010 12:59 am Post subject:

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

... since you're not American Grendal... why do you care about US taxes? (see below Laughing

)

chailocks:

Go to the IRS website and look at Publication 54. You can use the online forms like Turbo Tax or H&R, but your first year there are hoops to jump through and special forms to file.

Once you have overseas residency (see the rules for this... it takes a year), the first $91,400 is tax free.

VS

Grendal · Posted: Mon Sep 27, 2010 1:42 am Post subject:

scot47 · Joined: 10 Jan 2003 Posts: 15343

VS, Mister Grendal is interested in the US Tax System because he knows full well that Her Majesty's Inland Revenue has a nasty habit of looking at ways to extract more money out of us. In doing this they often study what Uncle Sam and the Cousins have been up to.

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

scot47 · Joined: 10 Jan 2003 Posts: 15343

...........but in global terms, we are still in the top 10 percent ! "The world is ill-divided !"

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

Of course... I should have specified "western expats."

VS