US resident & Taxes in the good ole UAE
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US resident & Taxes in the good ole UAE
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 6 week on 6 week 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…..
I am a UK citizen, resident in the US (green card). I have been offered a position in the UAE to work on a 6 week on 6 week 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…..
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mmmmmmmmmmm.......
Hi there Brownlees...firstly, don't quote me on what I tell you but,and if someone knows for sure and I am wrong then I apologize in advance, but I think you certainly need to look into this further.....Firstly, I am married to a U.S. citizen, (I am British) and I lived in the U.S. as a green card holder for 3 years. When I left the U.S. to live in the U.K. (about 5 years ago) I remember reading that if you are out of the U.S. for x amount of days (cannot remember how many) you lose you green card (residency)...
Also, unless the U.S. has some sort of agreement with the UAE, I thought that all U.S. citizens (not sure if this includes U.S. green card holders, but if you are filing a tax return I would have thought so)!! HAVE to pay taxes to Uncle sam, whether living abroad or not?????
(I think only the U.S. and Canada do this)??
Maybe the interviewer thought that as a U.K. citizen you will not pay taxes to H.M. government (if you are out of the U.K. for the required No. of days too) in which case he is correct....
As I say, I am not 100% sure of the days in/out of the country, but you should definately get some professional advice before taking the plunge...
All the best,
David.
Also, unless the U.S. has some sort of agreement with the UAE, I thought that all U.S. citizens (not sure if this includes U.S. green card holders, but if you are filing a tax return I would have thought so)!! HAVE to pay taxes to Uncle sam, whether living abroad or not?????
(I think only the U.S. and Canada do this)??
Maybe the interviewer thought that as a U.K. citizen you will not pay taxes to H.M. government (if you are out of the U.K. for the required No. of days too) in which case he is correct....
As I say, I am not 100% sure of the days in/out of the country, but you should definately get some professional advice before taking the plunge...
All the best,
David.
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There is a lot of info on the web.
If you file your tax return you should not have a problem. Tax free only after 321 days out of country and only up to US$80K...at least that is what it used to be.
I used to work overseas while on a green card and traveled home on my time off. Every time I entered, the usual questions...how long were you gone (they know) and who do you work for. Never had a problem. Got a US passport now and that is a lot easier
Good luck!
Work Abroad, Live Abroad - Immigrants: Don’t Treat your Green Card like it was a Visitor’s Visa
U.S. Citizens and Resident Aliens Abroad
If you file your tax return you should not have a problem. Tax free only after 321 days out of country and only up to US$80K...at least that is what it used to be.
I used to work overseas while on a green card and traveled home on my time off. Every time I entered, the usual questions...how long were you gone (they know) and who do you work for. Never had a problem. Got a US passport now and that is a lot easier
Good luck!
Work Abroad, Live Abroad - Immigrants: Don’t Treat your Green Card like it was a Visitor’s Visa
U.S. Citizens and Resident Aliens Abroad
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There is a lot of info on the web.
If you file your tax return you should not have a problem. Tax free only after 321 days out of country and only up to US$80K...at least that is what it used to be.
I used to work overseas while on a green card and traveled home on my time off. Every time I entered, the usual questions...how long were you gone (they know) and who do you work for. Never had a problem. Got a US passport now and that is a lot easier
Good luck!
Work Abroad, Live Abroad - Immigrants: Don’t Treat your Green Card like it was a Visitor’s Visa
U.S. Citizens and Resident Aliens Abroad
If you file your tax return you should not have a problem. Tax free only after 321 days out of country and only up to US$80K...at least that is what it used to be.
I used to work overseas while on a green card and traveled home on my time off. Every time I entered, the usual questions...how long were you gone (they know) and who do you work for. Never had a problem. Got a US passport now and that is a lot easier
Good luck!
Work Abroad, Live Abroad - Immigrants: Don’t Treat your Green Card like it was a Visitor’s Visa
U.S. Citizens and Resident Aliens Abroad
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You can’t have it both ways. Make up your mind and decide what is more important to you, tax free status or permanent residency? According to US immigration laws you can not stay out of country for more than 6 months within a 24 month period without jeopardizing your permanent resident status. On the other hand in order to get tax free status for the first 80-85k you have to prove you spend 335+ days out of country. IRS is known to check passport stamps and other documents to support this claim if it comes to a tax audit and at this point you are in violation of immigration law!
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Here is the latest on the tax issue on the IRS website..
Foreign Earned Income Exclusion
If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction.
If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to $91,400 of your foreign earnings. In addition, you can exclude or deduct certain foreign housing amounts.
You may also be entitled to exclude from income the value of meals and lodging provided to you by your employer. Refer to Exclusion of Meals and Lodging in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, and Publication 15-B, Employer's Tax Guide to Fringe Benefits for more information.
Foreign Earned Income Exclusion
If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction.
If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to $91,400 of your foreign earnings. In addition, you can exclude or deduct certain foreign housing amounts.
You may also be entitled to exclude from income the value of meals and lodging provided to you by your employer. Refer to Exclusion of Meals and Lodging in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, and Publication 15-B, Employer's Tax Guide to Fringe Benefits for more information.
- Requirements
- Can I Claim the Exclusion or Deduction?
- Tax Home In A Foreign Country
- Bona Fide Resident test
- Physical Presence Test
- Exceptions to Tests
- Figuring The Exclusion
- Choosing The Exclusion
- Revocation
- Which Form to File
- Foreign Housing Exclusion or Deduction
- Individual Retirement Arrangements
- Extension to Claim Foreign Earned Income Exclusion
- Application of Foreign Earned Income Exclusion and the Combat Zone Exclusion to Civilian Contractors Working in Combat Zones (PDF)
- Form 2555, Foreign Earned Income (PDF)
- Form 2555-EZ, Foreign Earned Income Exclusion (PDF)
- Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return (PDF)
- Form 2350, Application for Extension of Time to File U.S. Income Tax Return (PDF)
- Internal Revenue Bulletins
- Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
- U.S. Citizens and Resident Aliens Abroad
