Job Discussion Forums

[worldtraveler411]

I realize the salaries in the Middle East for the most part are called or deemed "tax-free" but I've been reading about the U.S and the IRS says you have to pay taxes to the US if your stay is 12 months or less.

So in other words, it's not really tax-free because you are going to have to pay taxes on the salary unless you stay over 1 year.

Basically I would have to commit to a 2 year stay.

Any comments?

Also do we have to pay taxes on the apartment that's included in the contract?

[spiral78]

Gee. It's not a quick lottery win type gig.



Bummer.


As has been pointed out earlier, it's not really a job for people who aren't willing to commit to a reasonable level of time/work/etc., these days. 20 years ago, it was all a different story. Now, you've got highly qualified, experienced competition, who are well aware of the related tax laws and other parameters.

Would-be-newbies with unrealistic expectations often become fodder for the many bottom-feeder, exploitative employers in today's job market.

[RedLightning]

For the foreign earned income exclusion, you just need to be outside of the United States for 330 days which, obviously, leaves you with 35 to spend back in the US (days traveling to/from the United States DO NOT count towards your 330 magic number, so count on spending 30-32 days back home).

You can go anywhere in the world for any reason (vacation) so long as you stay out of the United States for 330 days

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-physical-presence-test

[rtm]

[veiledsentiments]

When it states in a job ad that it is "tax-free." they are always referring to the country that is paying your salary. Obviously tax laws are different in every country... the US, Canada, the UK, or Oz... all have different tax hoops that their citizens must jump through. And it is the citizens responsibility to educate themselves on the rules.

It is all written in the US tax code - see Publication 54. If you are unable to read and interpret the information from the IRS, find yourself a tax accountant who understands expat situations. Your local H&R Block in Nebraska may very likely screw it up.

VS

[1Sapphire1]

I was going to chime in here but the two things that I was going to say have already been said perfectly and correctly.

[jkazz7]

This isn't quite true. If you're going based on time outside the States, it's most of the year outside the States (see the specific IRS publication - I think it's 330 days or more outside the States).

One other gem to keep in mind is that you can stagger your "tax year". It doesn't have to run from Jan 1 - Dec 31. You can stagger it from June 1 of one year to May 31 of the following year, for example. Again this is shown in one of the IRS publications. This is another possible way to meet the 330 days or more outside the country to qualify for the federal tax exemption (up to $96,000 or so - it changes a bit each year). Of course, if you're making more than $96,000 each year, then you'll have to pay federal taxes on the amount above that figure....

On the other hand, if you were to decide to run an on-line business overseas (merely choosing to live in another country), then you'd still have to pay federal taxes - you've merely chosen to conduct your on-line business somewhere else, but there's no geographic reason that you're allowed an exemption in this case. I'm sure some people do (or try), but it's simply not legal to do it....

[jkazz7]

Another tax-related item to keep in mind when living and/or working overseas is that you have to keep filing your taxes.

I've known some American workers overseas who said they didn't have to do this. Unfortunately, they are incorrect.

One very good reason to continue filing your taxes is that there is a time limit for being audited. When you file your taxes, the IRS can ONLY audit you for 3 past years plus the current year. If you don't file your taxes, then there is no statute of limitations.

However, it is true that if you're below a certain income amount each year you don't have to file your federal taxes. I don't know what the number is, but I have always filed my taxes to reduce the issues tied to a potential future audit.

[hash]

[nomad soul]

Seriously, refer directly to the IRS: https://www.irs.gov/individuals/international-taxpayers

[jkazz7]

No, fellow, I'm not in the Sand Castle.

I'm RICH. I live everywhere.

You can quote your little Bloomberg articles as you wish.

Everything I wrote is quite correct.

I know how much I've made in the stock market this year - how about your friends at Bloomberg? Or you?

Keep posting your trash, my low IQ friend.

If you wish to verbally joust, don't bring a Nerf bat - bring a smart friend next time - very smart.

[veiledsentiments]