Job Discussion Forums

sahara musafir · Joined: 21 Oct 2009 Posts: 22

I have a question about social security taxes for Americans working in the Middle East. I have an offer for a tax free salary, but that must mean tax in the country I'll be working in. The overseas exemption means no federal income tax, but that doesn't apply to social security. How do you file your US taxes and what percentage does it end up taking off of your salary?

johnslat · Posted: Wed Feb 03, 2010 10:53 pm Post subject:

Dear sahara musafir.

In Saudi Arabia and, I believe, the UAE, Oman, etc.) there are NO "income taxes" for ex-pats.

Please check out thiese threads:

http://forums.eslcafe.com/job/viewtopic.php?t=54891&highlight=taxes

http://forums.eslcafe.com/job/viewtopic.php?t=76128&highlight=taxes

You do not and cannot have social security taken out unless you are working for an American company.

Regards,
John

eclectic · Joined: 09 Nov 2006 Posts: 1122

true but uncle warmonger still requires you to file your returns even if there's no tax burden because the uncle wants to monitor your every move in case you want to publicly express your opinion about his foreign policy.

johnslat · Posted: Thu Feb 04, 2010 1:37 am Post subject:

Dear eclectic,

Yup, you do have to file (that's covered in the threads given.)

Regards,
John

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

15yearsinQ8 · Joined: 17 Oct 2006 Posts: 462 Location: kuwait

i know people who haven't filed for years
also i know teachers who write social security a check every month

you can file yourself or have an accountant do it

lots of conflicting info on this board, as with anything important like legal and finance issues, consult a professional in these fields
dave's boards are ok for a guide but consult a pro

eclectic · Joined: 09 Nov 2006 Posts: 1122

the us cannot enforce their illegal tax "laws" on someone who lives forever abroad. and if they try to show up one night in Kuala Lumpur or Muscat to ask why that someone has not filed for years, please punch them in the nose. Smile

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

My first career was as an accountant. I stand by completely any information that I pass on about US taxes. I can read and understand the tax code. And in order to be paying SS to the US, you must be an independent contractor overseas and you also have to pay US taxes on 100% of that income. You are not eligible for overseas income exclusion.

And eclectic... as long as you never come back, there is nothing they can do. If you come back, they can do whatever they damn please.

VS

johnslat · Posted: Thu Feb 04, 2010 4:49 pm Post subject:

Dear 15yearsinQ8.

To whom do they write the check? I had a friend who works in the UAE visit here, and he wanted to know about the possibility of paying into Social Security while he was working/living there.
So, we got in touch with the SS people, who informed us that the ONLY way an American could contribute to SS while over there was if they were working for the US government there or for an American company.

So, is either of those the case with the people you know?

Of course, anyone can set up their own bank account and "contribute" to that for their retirement.

Regards,
John

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

That is what they tell everyone and it is generally true with one exception, as I mentioned above. As the rules are written, if you are doing private lessons outside your contract, that money is fully taxable as an independent contractor, and if you declare it, you would have to pay the SS on it, even if you didn't make enough to actually have to pay income taxes on it.

Of course, the number of people who declare their private lesson income and do this is likely rather small... Cool

VS

sahara musafir · Joined: 21 Oct 2009 Posts: 22

Thanks to all of you for the helpful information and the links. I have absolutely no desire to pay into the social security system so this is welcome news. I also do not want to be interrogated by an IRS agent at the airport when upon arrival for my first summer break.

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

Don't worry... we are such small fish that they won't ever notice us...

VS

eclectic · Joined: 09 Nov 2006 Posts: 1122

eclectic · Joined: 09 Nov 2006 Posts: 1122

Its called a Money Junkie Empire trying to fund its global wars and bailing out the "Too Big To Fail" crooks, by using ordinary peoples' hard-earned money.

15yearsinQ8 · Joined: 17 Oct 2006 Posts: 462 Location: kuwait

http://www.socialsecurity.gov/online/ssa-7163.pdf

more to follow for johnslat

also one has to pay in 10 years or 40 quarters to receive normal benefits from SSA