Qatar Airways anyone?

[Violet]

You know, it's all what you make of it. I've been at Qatar for over 2 years now. It is a good place to travel from. The pay beats anything that you can find in the US and it is tax free. You have to take 42 days paid leave a year (twist my arm). It's expensive if you have kids (school allowance will cover one okay, more than one you'll be digging into your pay). Schedules are good for the 330 and 777; crappy for the 320.

 

[CLR2LND]

How is the pay tax free??..I dont think you can be a resident there so must have to pass the physical presence test ??

 

[Dumb Pilot]

How is the pay tax free??..I dont think you can be a resident there so must have to pass the physical presence test ??

Quite a bit of confusion about this particular subject. When one of these jobs abroad hires you on the basis that your salary is "net and tax free" that means that the company will cover any tax liability as a result of your employment in that particular host country but as a US citizen you still owe tax to uncle Sam, If you are living abroad and don't come to the US that often then you can file for an exclusion of the first 95K of your income but you pay taxes on the rest. My advice is that you consult a tax professional with experience in foreign income sources.

 

[CLR2LND]

Your exactly right ..If you take too many days off in the states you will not qualify
for the exclusion and you will owe tax on everything you make even if your employer
covers your taxes in your foreign country. However if you are a resident of that foreign country I.E you have a green card then you can go back in forth to the states as many times as you like and still qualify for the exclusion since you are a resident of both countries.

 

[macdu]

I consider myself a "bona fide" resident of my host country. I live here in an apartment I lease. I pay all utilities, etc., out of my pocket. I have a contract to work, a local license, expert certificate(you have a skill they need). I believe I fulfill that definition the IRS sets out. I take the exclusion and visit the U.S. 4 times a year for 100 days. I also suggest an LLC for yourself.
As a side note. As opposed to being laid off I chose to leave the U.S. and continue working and supporting my family with my skill. I hope the govmunt understands the effects of the expat group who is supporting our hometown economies. Instead of collecting unemployment now I have helped keep a car dealer, furniture store, roofer, appliance store, carpenter, and a plumber in business. I was lucky to be able to turn myself from being a victim of the financial crisis to being winner. With the added benefit of helping others too.

 

[Dumb Pilot]

If you take too many days off in the states you will not qualify
for the exclusion and you will owe tax on everything you make even if your employer covers your taxes in your foreign country

Correct but you still have significant deductions available to you by offsetting the per diem allowance from the IRS vs. what the company pays you. This is my case since it is a commuting job and I come back to the US every month

However if you are a resident of that foreign country I.E you have a green card then you can go back in forth to the states as many times as you like and still qualify for the exclusion since you are a resident of both countries.

I think that in that case you would be using the "non double taxation" part of the regulation instead and not the exclusion, I could be wrong though.