USA taxes (housing allotment and school fee reimbursements )

[casablanca]

Just wondering if anyone could shed some light on how the IRS handles school fee reimbursements? At first glance this appears to be taxable?

[go46ball]

What isn't taxable from the good 'ol US of A. That's a easier question to answer!
:mad: politics and a broke country.

[gl69]

Everything is taxable. The dry cleaning, car pick up, housing allowance and of course the education allowance.
When you add it all up (and you are honest) you will have a tax bill north of $40,000. Hardly makes it worth while to come to the sand. Think long and hard before coming to the sand, especially if you are an American but this warning goes to every pilot thinking of taking the plunge.

[fliion]

The above poster is wrong.

About.com: http://www.irs.gov/instructions/i2555/ch02.html#d0e705 (http://taxes.about.com/gi/o.htm?zi=1/XJ&zTi=1&sdn=taxes&cdn=money&tm=14&f=10&tt=65&bt=1&bts=1&zu=http%3A//www.irs.gov/instructions/i2555/ch02.html%23d0e705)

The above link will give you a look at your exclusions including the appendix at the bottom of link indicating the UAE housing exclusion amounts. (Quite generous) You also get salary exclusion up to almost $100k

There are various other ways to skin the cat....all legit...but the best way to do it is to pay up for a proper accountant...not one of the cheap generic 'filing factories'.

Invest in an accountant...great ROI.

There is no public education available to our children in the UAE. One could argue very strongly with a tax judge that it's corporate funded which is effectively public schooling particularly of the corporation is part if the govt. What would help your cause is going to a school that directly bills the govt (co. ) such as DESC, GEMS, JESS etc. As against your payroll showing income and then disbursement.

f.

[Taylor01]

Why would you claim more than the allowable exemption for income overseas? If you do, then why are you here? You came hear to make tax free money, right? When you start filing every little thing we came here for, it just opens the window for more problems. :ugh:

[motojet]

Everything is taxable. The dry cleaning, car pick up, housing allowance and of course the education allowance.
When you add it all up (and you are honest) you will have a tax bill north of $40,000. Hardly makes it worth while to come to the sand. Think long and hard before coming to the sand, especially if you are an American but this warning goes to every pilot thinking of taking the plunge.


Think boys!!!!!
Why would you claim more than the allowable exemption for income overseas? If you do, then why are you here? You came hear to make tax free money, right? When you start filing every little thing we came here for, it just opens the window for more problems.

I think there is a happy median somewhere between the GL69 and Taylor1 school of tax compliance/avoidance. While an argument can be made that reporting every little thing may open a can of worms. The IRS isn't stupid and underreporting may lead to "problems" and unwanted attention also. Just my opinion and of course everyone is entitled to their own strategy.

[Metro man]

The King of Thailand was born in Cambridge Massachusetts USA in 1927. Normally the children of diplomats born in a foreign country won't acquire the citizenship of that country but it would be interesting if the IRS decided to treat him as a US citizen and demand seven years of back taxes plus penalties.;)

[NGFellow]

Per the IRS you are required to declare your income and any allowances (housing, education, transport) in addition to the value or amount given to you for annual tickets. You are entitled to the foreign income exclusion if you meet the criteria and housing can deducted. If you add all of the above, there is likely to be tax liability, but not that significant depending on income.

[littlejet]

and also, more than 250kt below 5000'

[metro301]

JRJ, working in the US 10 years ago, we were alerted to the tax liability for non-rev travel via the automated system. I also remember that we had the tax liability deducted directly for buddy passes. I could be wrong it was awhile back and I never used it all that much.

[NGFellow]

I declare the Annual Leave Tickets and I am not with EK. My company buys fullfare tickets for us (self and family) each year to the U.S. My travel department provides the cost invoice in USD.

[Desdihold]

Gentlemen , be very careful about expressing your views in such a public forum. The IRS has an rep based in Dubai and may be the root of all the demand letters being issued to US ek pilots.

I know of eight guys who have received such letters and each letter demands $30k or so per year for the time spent here.

[johnnyramjet]

Thanks Desdi