Salary and offer/package questions - Part 2 - View Single Post
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Old 21st August 2013, 04:19 AM
abbzia786 abbzia786 is offline
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Users Flag! Originally from usa. Users Flag! Expat in uae.
Default Salary and Taxes for US citizens

I am also in a negotiation phase. My question to some of the users would be - for example:
If salary is 95,000 USD, 30,000 USD in housing allowances, 20,000 in school allowances for children, comissions being seperate, then my tax liability for US citizens would be as follows:

Foreign earned income exclusion for 2013 is 97,600 USD based on the fact that I pass either the Bonafide residence test or Physical Presence test - So salary would be tax free
I also get some housing exclusions up to 57,000 for dubai which means no taxes on housing allowances
With my wife and my two children as dependents, I am sure i will get further tax breaks,
So my thinking is that my tax liability would be very little, ie. whatever is the remaining amount left and on commissions
i know its not this simple but somebody share their thoughts.....the tax thing is driving me crazy
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