More Emirates tax questions

[Dewey Oxberger]

Given the splendid state of the US airline industry lately, I've been giving some serious thought to EK. From what I understand, your first $87.5K each year is tax free. Here are some other Q's:

1. Will the IRS count the value of your free housing/utilities as taxable? That would put your income well above the threshold even as a newhire. Per diem still tax free?

2. If you join in the middle of the year is your EK income for that year still tax free? I thought you must work out of the country for 330 days during the calendar year for that income to not be taxable.

3. How is the provident fund taxed when coming back home? Like a 401K (at withdrawal) or do you pay capital gains up front?

Thanks!

 

[colejer]

Emirates Taxes

1. 95 percent sure you do not have include housing.
2. I arrived in Sept. This year I filled for an expectation to qualify under 330 days extension. It's a specific form and allows you to delay filing until you reach the 330 days. After you have been in here a full tax year you qualify under the bonafide residence test and can go back to the US as much as you want ie. you can be in the US more than 35 days a year.
3. Don't know the answer to this one.

 

[Dewey Oxberger]

Thanks for the info. So did you have to pay taxes on the $$$ you made from Sept.-Dec. last year?

 

[colejer]

Thanks for the info. So did you have to pay taxes on the $$$ you made from Sept.-Dec. last year?

Haven't done them yet but do not have to pay taxes on it

 

[Dewey Oxberger]

Good news. Congrats on the profit sharing, spend it wisely! (I hear beer's a little pricey in Dubai)

 

[gcaflyer]

Are there any good U.S tax people in Dubai that are familiar with pilot tax returns

 

[typhoonpilot]

1. 95 percent sure you do not have include housing.

I include housing. It is open to debate as to whether or not you do as there is a clause in the rules that says if the housing is provided for the benefit of the employer then it doesn't need to be declared. I think that applies more to oil rigs, remote stations, and such, not the housing that Emirates provides.

There is a housing exclusion amount which is around $13,000 on average, but higher for Dubai because it's a high cost of living zone. That amount is on top of the foreign earned income exlcusion.

The core group of original American pilots all declare roughly the same amount. Might be wise to get onboard with that so you don't raise any red flags for yourself.

With my housing and pay added together I made a significant amount over what you guys think is the threshold for paying taxes, but once other deductions are included I still didn't pay a penny to Uncle Sam.



TP

 

[Bertie Wooster]

are there any pilots who have left their spouses behind for some reason or the other?

My wife is in school and wont finish for a while, how would this work with taxes???

thanks

 

[Varmint]

are there any pilots who have left their spouses behind for some reason or the other?

My wife is in school and wont finish for a while, how would this work with taxes???

thanks

Do not file "married filing jointly". You file your return with your tax free income overseas and she files her return in the US with her taxed income.

 

[bigsky]

Does a "R.O.N" or trip into the USA as a required crewmember count against your max 35 days allowed in the USA?