Job Discussion Forums

[sciencegirl]

I've done a search on this but haven't found anything applicable-any input would be helpful-I'm trying to compare US takehome with UAE tax free salary.
Is the salary agreed on as is or is there money taken out for things other than taxes?

[Never Ceased To Be Amazed]

[adorabilly]

Science Girl.
Your agreed upon salary is what they pay you. There are no taxes taken out. Now if you have to pay insurance issues or other things, that might be deducted but what you get on your contract is what you get paid.

the other thing to take into account is that the best employers here will provide housing free, round trip tickets for the teacher and their family, and educational allowances.

So when trying to figure out a comarison, you need to take into account the housing, airfare, and childrens educaiton in the comparision.

now with that said, they do "nickel and dime" you. So you will need a license, then a national id card, then this special toll pass, etc...
but there is nothing deducted from your salary by the UAE government

NCTBA.

I can't agree with you more. It doesn't matter what you make file your income taxes.

The problem is when you go back to the US after an extended stay abroad. Then when you start filing in the states, they will flag you and audit you.

That is where the problems start. So just file while abroad (there is ONE extra form you need to fill out), and it should take care of any problems.

[homeless vet]

IRS Pub 54 has all the info on tax issues for Americans working abroad:
http://www.irs.gov/pub/irs-pdf/p54.pdf

Lots of Americans who work abroad have relied on urban myths about tax laws to their detriment. Check out what the IRS says and make sure you follow the rules, less you get smacked with tax, plus interest and penalties.

[homeless vet]

It is also advisable to be familiar with IRS form 2555:
http://www.irs.gov/pub/irs-pdf/i2555.pdf
[/code]

[johnslat]

Dear adorabilly,

"The problem is when you go back to the US after an extended stay abroad. Then when you start filing in the states, they will flag you and audit you."

Maybe I'm just lucky, but after what I'd consider "extended stays abroad" (of seven and six years), I was never audited.

I ALWAYS filed when I was overseas - never paid anything, of course, but always filed.

Regards,
John

[sciencegirl]

I guess that's where I was confused-filing vs paying
since I will have still have exemptions to claim-taxes on property in the states, etc. not filing won't be an option.
I checked the IRS website and got caught up in the abode vs tax home vs bona fide residence
since most of you have had to deal with this I thought it was easier to ask.
Thanks to all!

[veiledsentiments]

The rule is that all overseas residents must file a return every year. But, the first $87,000 in income is not taxable. (total of salary and value of benefits - but they really have no way of checking the number that you put down. )

The first year abroad is the most complicated because we always arrive in August or September. Those who are afraid of tax forms will often just pay tax on the first four months. But, there is a special form for overseas filers and you extend your first tax return until after you have reached the 12 months. If you are one who is afraid of trying to decipher their prose, find a tax accountant to help you with that first year.

It becomes a bit more complicated if you have over about $10,000 in income in the US. (a house you rent out... investment income) When you file that first year extension, you will have to pay all taxes that will be have been due by June 15. (we get an automatic 2 month extension to file)

If your eyes have rolled back into your head from all this, consult a tax accountant before you go or just come back and ask me the first April after you start in the Gulf.

VS