US Resident & working in the UAE

[Brownlees]

Colleges and fellow aviators, a quick question if I may be so bold, an old topic perhaps but in this ever shrinking world we live in, I'd appreciate any wise words of advice.

I am a UK citizen, resident in the US (green card).
I have been offered a position in the UAE to work on a 6wk on 6wk off schedule, approx $500 a day in country.
My US interviewer said that this would be a tax free salary.
As he is a US citizen and not a US permanent resident, like myself, he could not fully answer two of my questions:

A) Would a 6 week on 6 week off schedule, affect my US green card residency ?

B) I know I will still have to file US Tax returns in order to retain my residency, BUT Would I still be eligible for any tax breaks on my earnings in the UAE, like my US Citizen colleges. Or with me being a US resident (green card holder) working in the UAE on a 6/6 rotation, would I forfeit this tax free privilege.

Cheers guys ! be gentle it’s my first post…..:eek:

[EK2EYengineer]

it depends on lot of things are u getting your salary paid in US or overseas

[typhoonpilot]

Your answer can be found here:

IRS Pub 54 (http://www.irs.gov/publications/p54/index.html)




Typhoonpilot

[yankee22]

If stay less than 35 days in the US per year, your overseas earnings are only taxed if you exceed approx $88,000/year. And even then, they can only tax the money you earn above this threshold (ie: anything made above $88,000).

If you are in the USA more than 35 days a year, than I believe they will tax your entire world wide earnings. At least that's how I understand the law.

The catch 22 for you is that in order to maintain your US Residency, you have to make it seem like you are residing in the USA. In doing so, you will have to spend more than 35 days back home which is opening you up to full taxes on your entire salary.

You will have to do the math.... the money can be good over here at times but if you're not earning tax free money at the end of the day, is it really worth it???

Good luck with it.... Be smart as you may not want to jeopardize your greencard status.

Yank.

[Desert Diner]

You need to talk to an immigration attorney on this.

But from what I recall, the physical residenc test isn't a requirement for the green card but for your road to citizenship.

To pass the citizenship test you have to prove permanent residence in the US for at least the last 5 years or so. To get the non resident tax credit you have to prove non residence in the US. Kinda mutualy exclusive.

As for the 6w on / 6w off, if you spend those 6 weeks off you will never establish non US residence status for the tax break. But you may end up establishing non residence status for your green card.

You need to see a good lawyer.

[Uncle Wiggily]

The post about 35 days/$88,000 dollars is accurate.

[RJSAviator76]

Actually, for 2010, the exemption is up to $91,500.

Additionally, even as a US resident (green card holder), you are still obligated to file US income tax returns for all income including overseas.

Gotta love the IRS... :mad::mad:

[metro301]

I am in same boat.

Maintain a residence in the USA. Enter the USA each 6 months or your resident status can be re-evaluated. (They can pull the green card).

It is all about intent. If you can show that you desire to return to the USA full time and settle you will be ok. That can be done by owning a house, maintaining a residence, having family inside the USA, bank accounts, loans etc.

Remember to enter each 6 months.

Your absences will reset the 3 or 5 year clock to getting citizenship.

The laws governing Taxes and Immigration are from completely different books. The 35 days for taxes has nothing to do with your green card.

[Scooby Don't]

Colleges??? Oh, right. Colleagues....

[fly2AK]

In order to maintain your green card / resident status you cannot be out of the country for more than 6 months a year otherwise you can jeapordize your resident status. However, you can pay a fee and file some paperwork with immigration explaining that you still reside in the US but are working abroad and may be out of the country for more than 6 months, but it is important for you to file the appropriate paperwork. Gaining residence is difficult to do, so if I were you and you consider that as your highest priority, and just do the best you can on the taxes. Even if you can't maintain tax exempt you should still be able to deduct your time spent in the UAE for work, talk to an aviation tax guy if you need one I could recommend one for you just send me a PM. Good luck.

[metro301]

Fly, I disagree.

Every reference to 6 months is in regards to being outside of the country for more than 6 months at a time or they can re-evaluate your status.

I have not seen anything written in the immigration laws regarding a physical presence in the USA for 6 months a year.

I have talked to 3 separate immigration lawyers in 3 different districts.

If you can provide a source it would be greatly appreciated.

If you are going to be gone for more than 6 consecutive months, you can apply for the paperwork that Fly mentioned. That is good for 1 year and can be extend for an extra year. You must be inside the USA at the time to apply for this.

Again, intent is a key factor. If you are spending all this time away in your home country, they will be suspect. If you are spending it in a country were you can not gain citizenship and cannot get permanent resident status, that is different.

[ekairbus]

There are two issues here, one being the IRS/taxation the other being INS/greencard.

I suggest commuting back and forth back to the US every six weeks, therefore the greencard issue is no longer a concern. You would still be a US resident.

What remains is the IRS issue. By commuting you will blow through the 35 day limit very quickly but I believe you may be able to deduct the M&IE's (meals and incidental expenses)on your tax return.

M+IE's are calculated by the IRS for all American cities and for many international destinations. If you take the rate for M+IE Dubai per day and multiply it by the number of days you spend here then you should have a fairly healthy tax deduction to offset any income tax you pay from living in the US for 1/2 of the year.

[moggiee]

$500 a day for 183 days per year = $91,500. That just happens to be the tax free allowance mentioned by RJSaviator76.

No problem with the IRS, then - so just commute, keep the green card and everyone is happy (apart from the IRS who get nothing!).

[frieghtdog]

to be able to maintain a green card status, you have to enter the US at least once every year, but to be able to apply for citizen ship you have to have a continuous residency , which is 2 and I /2 year out of the last five years with no gap outside the US of 6 months or more. I suggest to go to uscis.gov and download the N-400 form to have a good idea to what to expect when you are filing for your citizen ship.

about paying tax, you will not pay tax up to (91500) if you reside outside the US and you can not be in the US for more than 35 days.

hope this will help.
F.D