Emirates And Taxes

[CRJ200pilot]

I know it is tax free money up to 87,500 a year. But If I was to go work in Dubai For 3 years and Saved 100,000 and Decide to move back to U.S. Would I owe The IRS?

 

[BigPappa]

duuuuuuuuuuuhhhhhhhhh

 

[tyuwerty]

If you declared the income properly to the IRS then, no you would not be taxed on the savings. You would be liable for any tax on the interest or investment profit you earned from it.

 

[AA717driver]

Isle of Man. TC

 

[typhoonpilot]

Isle of Man. TC

Try opening a bank account offshore with a U.S. passport these days. The offshore banks don't want anything to do with American citizens. You can open one in the UAE as a UAE resident, but most other jurisdictions will refuse your business. Not that I would know :erm: .

Answer to the original question. During my first stint overseas in the 90s I had a bank account in Jersey ( the one in the English Channel ). I declared all my income and declared that bank to the U.S. Treasury Department as required by law. When I moved back to the USA I closed the account and wired over $100,000 to an account in the USA. Never had one question asked about it by any government authority.

As long as you are honest in filing your taxes and complying with the Treasury Department rules on reporting offshore banks you won't have any problems. See TD F 90-22.1 for the requirements to report foreign bank and financial accounts.


Typhoonpilot

 

[AA717driver]

Great! Now you can't even hide your income from the IRS. :crying:

What's an honest guy got to do to get a break? TC

 

[higherflyer]

Try opening a bank account offshore with a U.S. passport these days. The offshore banks don't want anything to do with American citizens.

Typhoonpilot

Opened accounts in the UK and the Channel Islands without any problem. At tax time, file the required treasury forms and no one will ever bother you.

TP, how are the EK pilots handling (or planning to handle) the payouts from the Provident Fund. That could be one whopping tax bill if declared legally and the IRS considers it to be one payout!

 

[Wiggums]

I thought banks in Dubai weren't sharing information with IRS yet?

 

[Pistlpetet]

The Patriot Act changed everything. Now the US can track where all money is sent and recieved. That is why Banks in Hong Kong, etc do not do business with Blue Passport holders.

You will always have to pay taxes on all income you have as long as you are a US Citizen. You can only give up your passport to change that.

If you save 100K working overseas, you can send it anywhere. After you pay your income tax your money is your money.

 

[tyuwerty]

You will always have to pay taxes on all income you have as long as you are a US Citizen. You can only give up your passport to change that.

The IRS can still go after a person for something like 7 years following a renunciation of citizenship if they think it was done for tax purposes.