flying in Dubai

[cruxx@9]

A question for you ex-pat's flying overseas....

How do the taxes work when working overseas? Do you have to be out of the country for 18 months? What if you only have a six month or 1 year contract with one of these places? Can you come back to the USA for a break and woiuld that count against your tax free time? If you don't stay gone long enough, when do you pay the tax man...when you get home or through your entire work over there? Where ever "over there" is.

 

[JohnnyP]

.....

The way I had it explained to me before I left, was that you have to be working out of the country for at least 330 days to get the first $80,000 (or 85?) federally tax free. About the vacation time counting against your days away, I dont believe it does, but im sure someone else has more experience with this situation and can correct me if I am incorrect.

 

[MrSuupaFly]

The way I had it explained to me before I left, was that you have to be working out of the country for at least 330 days to get the first $80,000 (or 85?) federally tax free. About the vacation time counting against your days away, I dont believe it does, but im sure someone else has more experience with this situation and can correct me if I am incorrect.

If you have a work visa then the 330 day requirement doesn't apply. As long as you have that status on Jan. 1.

That might be a big confusing, let me clarify:

You get your work visa Jan. 17. You have to stay out of the U.S. for 330 days for that calendar year in order to get the tax benifits. The next calendar year the previous statement doesn't apply. You can come back to the U.S. as much as you want.

In reference to the tax benifit, you don't pay Federal taxes on the first $84,000. If you make over $84,000 then you pay taxes on that amount. But you're taxed as if you've made $84,000. So if you make $100,000, you'd pay 28% (if you're single) on the additional $16,000.

Hope this helps.

 

[cruxx@9]

Thank y'all for clarifying.

I appreciate the help, keep 'em in the green.