US tax living in Dubai

[Nilley]

I am trying to get a breakdown of what I can expect to net If hired by EK. As I understand as an american living abroad, our first 90k or so is tax free. After that we are taxed on all gain. So what are you guys paying in taxes, how are you calculating it, and do you know a good US international tax man you could refer me to.

I understand the nature of the subject is quite private, but any info would help. Thanks in advance!!

[Buford]

You're fine as an FO but once you make Captain...different story. The job isn't worth it then.

[Bunktime]

Thought it was the other way around......:(
But who am i anywas ...

[Semaphore Sam]

Buford is correct. First 90k or so is tax free...anything above that amount is paid at the tax rate of total income earned...for example, make 90k, you pay nothing; make 150k, first 90k free of tax, next 60k paid at tax rate of 150k, not 60k, which is very high, and due to go much higher next year. F/O does ok, Captain is taxed very high. Solution for Captain: stay home, or...get creative.

[Taylor01]

It is easy because you never make over 90K a year as a Capt. or FO. If you know what I mean!!!:ok:

[BeCareful]

Here you go:

http://www.irs.gov/pub/irs-pdf/i2555.pdf

To be safe and to do it right, use a CPA in the US - or you could find one in Dubai as well.

[asull]

A bit off topic, but how does the 330 day rule work? You are living in DXB but get assigned a LAX flight. Does that eat up 3 days of your 35 allowed stateside? My understanding is any day spent in the US or over the US is counted by the IRS, but it would seem hard for many Americans to avoid 35+ days just from US flights, much less any time they want at home personally.

[The Dominican]

When it comes to taxes, it is worth it to sit with a tax attorney and show him/her your contract, discuss the time you will spend, not spend in the US, if the company will pay your host country taxes and if they will supply the paperwork associated with such taxation, if you will earn in US currency or not, all these questions will play a part on your filing of the taxes in the US and it's liability, this is too important of a topic to be seeking information here:=
Spend the couple of hundred bucks that a tax attorney will charge, it will be the best money you will ever spend:D

[NGFellow]

The 330 rule usually gets most people and so it is better to opt for the bonafide resident rule if applicable and then you don't have to spend 330 days out of the U.S. You do however, have to be a bonafide resident for a period encompassing an entire tax year. If your host country pays your local taxes (no tax in Dubai I assume) the you can claim that and your tax burden is minimized. In the UAE you would be issued a resident permit which would then begin the period of bobafide residence.

[cadidalhopper]

The money earned on the flight to the US, not to mention over international waters, is not covered under the foreign income exemption. Expect to pay income tax on that income regardless of your earning level. With the growing number of American pilots at EK, you can expect an audit at some time. The IRS is not so stupid not to realize an EK Captain makes more then $95,000 a year.

It is wise to invest in a tax attorney. Turbo tax won't cover most of these issues. When they come knocking, it isn't pleasant.