Here comes Emirates - more US expansion & A380 use planned

[chignutsak]

Yep - when I ned tax advice I ask bunch of airline pilots on FI

 

[d328pilot]

Not true, I am a US expat living in the UAE with a resident visa and have to file an IRS tax return every year and the first question my CPA asks me is "how many days did you spend in the US in the past year?" 30 days, that's it! Go over that and you pay.

Then you seriously need a new CPA cause you are losing a lot of money. I have been an expat for 5 years and a bonafide resident of a foreign country and always been over the limit for days as I spend Thanksgiving and Christmas back home. I have always claimed the exemption and it passed an audit.

Read IRS Publication 54 and it clearly states that you must be outside of the US for 330 days per year OR a bona-fide resident. There is even a easy to follow flow chart for the reading impaired.

 

[Green]

Not true, I am a US expat living in the UAE with a resident visa and have to file an IRS tax return every year and the first question my CPA asks me is "how many days did you spend in the US in the past year?" 30 days, that's it! Go over that and you pay.

In and Out burgers may be worth it though!

The UK and Australia give their expat citizens 1 day less than 6 months on home soil so they get to go home much more often. That is more reasonable.

There is talk in DC of eliminating the tax exempt status of foreign income earned by expat American citizens altogether. How 'bout them apples!

Well I guess just like there are good pilots and crap pilots there appear to be clueless CPA's as well. I'm surprised this guy you use knows so little about his own profession. Obviously he doesn't do much work with overseas residents. To gain the foreign tax exemption you must either pass the physical presence test OR, again that's an OR, the Bona Fide Resident test....

here's a link if you are still skeptical. Why limit yourself to 30 days back home per year? Part of your employment with EK includes a resident visa.

http://taxes.about.com/od/taxhelp/a/ForeignIncome_2.htm

 

[Pull To Guns]

I stand corrected and so will my CPA! He never mentioned the Bona-Fide Resident test.
I understand it now. Thanks for all the info.

 

[d328pilot]

I stand corrected and so will my CPA! He never mentioned the Bona-Fide Resident test.
I understand it now. Thanks for all the info.

Make sure you go back and refile your taxes and claim the exemption for all the years you qualified. You are probably looking at some serious cash owed to you by uncle sam.

 

[Green]

and get a refund from that CPA! But he might have had you maintain your US resident status for other reasons? Good luck

 

[sdsaab]

Yep - when I ned tax advice I ask bunch of airline pilots on FI

It seemed to work well for this guy!

 

[Pull To Guns]

Make sure you go back and refile your taxes and claim the exemption for all the years you qualified. You are probably looking at some serious cash owed to you by uncle sam.

Let me clarify. I have not paid taxes since I have been over here and have a tax exempt status and filed that way. I was under the impression that I could only spend 30 days a year back in the US. It is a moot point though as I only have 30 days/year leave time which I do spend back home.

I can see now where the Bona-Fide residency would benefit flight crew that flew there all the time or those that had more than 30 days leave. In my case it makes no difference.

 

[propjob27]

On a tax note, I've been an expat for 6 years (FedEx)

And, yes, the bona-fide residence test is legit.

You can spend as many days as you want in the USA under this provision and still legitimately take your foreign income earned exclusion.

Get a new CPA

 

[Regional4life]

This one always comes up about once a year. You have to make sure you read the tax code correctly. Also helps to have a CPA with expat tax knowledge/experience as it really helps. As long as you have the residency stamp in your passport, you are fine. I've been commuting back once a month, plus my vacations, and the U.S. destination flights.

 

[BornAgainPagan]

I'd be surprised if EK flew the Airbus into Boeing's hometown.

Do you mean Charlotte? Oh wait, Boeing corporate is in Chicago!

 

[skypine69]

I dont think the 30 days counts the days you would be here on a layover..as you are working. That is of course if you dont meet the resident criteria.

 

[McNugent]

I dont think the 30 days counts the days you would be here on a layover..as you are working. That is of course if you dont meet the resident criteria.

Nope, if you are filing using the presence test, days in the US, even for business reasons count against your days at home. Actually time spent in US airspace when enterting and exiting the country counts too. Total BS.

 

[chignutsak]

It seemed to work well for this guy!

Pilots know everything! Just ask them.

 

[Green]

Nope, if you are filing using the presence test, days in the US, even for business reasons count against your days at home. Actually time spent in US airspace when enterting and exiting the country counts too. Total BS.

nobody working for Emirates should use the presence test. Every single pilot working for EK qualifies as a "bona fide resident" and could spend 180 days per year in the US if they could get the days off without jeopardizing their tax exemption. Why this is so hard for people to understand is beyond me.