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If you are American you still pay us taxes, no matter where you live. And you may need to report the house and car as taxable income as well.
by singlow 5y ago
If you are American you still pay us taxes, no matter where you live. And you may need to report the house and car as taxable income as well.
- aorth 5y ago> If you are American you still pay us taxes, no matter where you live. You have to file, yes, but you don't necessarily have to pay. For Federal taxes there is the Foreign Earned Income Exclusion. As long as you are outside of the US for at least 330 days in a year you can exclude up to $108,700 (for 2021) in foreign earnings. There are a few other scenarios too.
- singlow 5y agoIn this case you would pay. No FEIC if you don't pay taxes in the country where you earned the income. The UAE doesn't have a federal income tax and has no tax treaty with the US so several boxes are missing for FEIC.
- tdfx 5y ago> No FEIC if you don't pay taxes in the country where you earned the income That's technically only true for one of the two possible tests for FEIE. The presence test doesn't require any taxes to be paid anywhere else, and the bona fide resident test only requires that your "tax home" is in a different country.