Vspeeds

Hi all, I am flying for a carrier overseas in the Middle East.
Just curious as to how should I go about filing my Tax Returns when tax time comes around?

I heard (don't quote me on it) that if your income is less than $85,000 you don't need to pay taxes, if you work overseas. I guess I still gotta file something.
Also, the way I get paid is as follows:
1) Base Pay
2) Flt. Allowance
3) Housing
4) Misc.


So just curious if there are any IRS websites or if you wise folks have some tips please feel free to share.

Best Regards,

Fly safe everybody,

V

palgia841

Why would you want to pay taxes?!?!?

Just keep your mouth shut and the IRS has no way of knowing you are earning a living abroad. As far as they're concerned, you could have retired on the sandy beaches of Jumeirah.

Just keep your money abroad (not necessarily in the ME), and if/when you return to the US be judicious on how you spend it (ie. don't show up after 15 years of no tax returns buying a $1.2mil house cash....). Realistically though, with a pilot's salary, even at the high rates they pay in the ME, you're unlikely to accumulate enough cash to raise any red flags once you come back (and if you decide to come back).

The IRS's right to tax your income in the US is HIGHLY debatable. As far as their right to your money if you're living abroad, well.... they won't see a single penny from me!

FighterHayabusa

When I claimed US citizenship through my parents my financial advisor told me to think long and hard about it because I would be doomed to file a US tax return the rest of my life, even if I don't live here anymore.
The only way you (legally) won't pay US income taxes is if you have enough foreign tax credit to offset what you would pay for US federal tax.

So if you live in a foreign country that you pay income taxes to, you can use that as a tax credit toward your US income tax. Since taxes are generally lower in the US than elsewhere, your burden amounts to the time it takes to do the paperwork to show the US government you don't owe them anything.

That said, I know there are lots of American citizens living out of the US that are blissfully unaware of the rules and have not had any repercussions (yet).

Typhoonpilot

A lot of the information you seek is here and here.


Typhoonpilot

org1

Not true. The first (approximately) $85,000 is not taxable, but only if you are outside the US 330 days or more for either a calendar year or 365 day window. The document spelling this out is quite long, but worth reading.
http://www.irs.gov/publications/p54/ch05.html#d0e5691
http://www.usa-international-offshor...riate-tax.com/