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Discussion Starter · #1 ·
Salary: $75000 USD
Housing: $47000 USD
Childrent Edu: $8000/child between 4 & 19, I have 2 (2.5 & 3.5 currently)
Vacation Allowance: $17000 USD/year
Is this a great offer for a family of 4? I am currently living happily in US and making $92,4000 USD/year and my wife is making $50,000 USD/year. Is this a fair offer compare to what I am currently make? The reason I am hesitant is dubai is much more expensive than US (houston, TX) and there is also a tax issue where all the benefit will be taxable and at the end, I don't gain very much by moving. I just want other people thought on this because I have been thinking about it for 3 weeks now and still not sure if this fits my family.
 

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Salary: $75000 USD
Housing: $47000 USD
Childrent Edu: $8000/child between 4 & 19, I have 2 (2.5 & 3.5 currently)
Vacation Allowance: $17000 USD/year
Is this a great offer for a family of 4? I am currently living happily in US and making $92,4000 USD/year and my wife is making $50,000 USD/year. Is this a fair offer compare to what I am currently make? The reason I am hesitant is dubai is much more expensive than US (houston, TX) and there is also a tax issue where all the benefit will be taxable and at the end, I don't gain very much by moving. I just want other people thought on this because I have been thinking about it for 3 weeks now and still not sure if this fits my family.
I guess it all depends on how much you currently pay in taxes, and whether or not your wife will be working here(and if she'll bring in a comparable net income). The schooling allowing sounds a little bit low. I would try contacting the better schools in Dubai to get a handle on what sort of kindergarten fees you'll be looking at next year. I suspect that allowance comes in a little low for the better schools. I'll let the resident tax experts get on here and comment about the tax-free cap (87,000 or something to that effect)...good to know what you're facing come tax time. Good luck. Out of curiousity, if you don't gain much by moving, why are you still considering it?
 

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the 47000 housing will eat up most of the 87,000 no taxes.
the school allowance they are giving you is not enough. you would have to fork out another 2-4000 dollars per child.

I am from texas as well. Living is super cheap thier compared to Dubai.
I would counter offer
120k salary
80k housing
15k school per child
Also you need car allowance. like 1k a month
Everything is sooo much more exspenisve than texas. For instance a package of hotdogs is 5 bucks, A ralph loren polo shirt is 100 bucks, car prices gahhhhhhhh,,,,,,,,,,,,,,,,,

If they dont do that then I would turn it down. But if you are willing to lower your standard of living (a lot) to try somthing new then go for it.
 

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Housing Exclusion

the 47000 housing will eat up most of the 87,000 no taxes.
Only about $20,000 of the housing allowance is excludable.

Your total taxable income will be about $44,000 taxed at either 25 or 28% depending on whether your wife has income.

You won't be able to apply the FEIE right away. You'll have to satisfy the bona fide residence or physical presence test first and then apply it retroactively for the first tax year that you're out here.

Is your wife going to keep working? Compare the taxes on $44,000 plus the extra living/education expenses to the taxes you pay now on both your incomes. Which one has the savings?

Add the emotional element of family dynamics and community for your children and wife. If you're all flexible and somewhat of a risk taker, adapting to life here will be fine. If not, it probably won't be worth it considering what you're being paid.
 

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Discussion Starter · #5 ·
Thanks for those with great opinion

I've discussed this with my friends and it seems like everyone agreed that this is not a great offer unless I am desperately want to go to Dubai which I don't. At the end of the day, I don't want my family suffer so I can increase my career path with the company. I'll think I'll pass this offer unless they come back with a better package. Thank-you all.
 

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I've discussed this with my friends and it seems like everyone agreed that this is not a great offer unless I am desperately want to go to Dubai which I don't. At the end of the day, I don't want my family suffer so I can increase my career path with the company. I'll think I'll pass this offer unless they come back with a better package. Thank-you all.

I will agree with you friend, that;s not big "jump" compare to your existing income :)
 

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Salary: $75000 USD
Housing: $47000 USD
Childrent Edu: $8000/child between 4 & 19, I have 2 (2.5 & 3.5 currently)
Vacation Allowance: $17000 USD/year
Is this a great offer for a family of 4? I am currently living happily in US and making $92,4000 USD/year and my wife is making $50,000 USD/year. Is this a fair offer compare to what I am currently make? The reason I am hesitant is dubai is much more expensive than US (houston, TX) and there is also a tax issue where all the benefit will be taxable and at the end, I don't gain very much by moving. I just want other people thought on this because I have been thinking about it for 3 weeks now and still not sure if this fits my family.
No.
 

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Salary: $75000 USD
Housing: $47000 USD
Childrent Edu: $8000/child between 4 & 19, I have 2 (2.5 & 3.5 currently)
Vacation Allowance: $17000 USD/year
Is this a great offer for a family of 4? I am currently living happily in US and making $92,4000 USD/year and my wife is making $50,000 USD/year. Is this a fair offer compare to what I am currently make? The reason I am hesitant is dubai is much more expensive than US (houston, TX) and there is also a tax issue where all the benefit will be taxable and at the end, I don't gain very much by moving. I just want other people thought on this because I have been thinking about it for 3 weeks now and still not sure if this fits my family.
no here , must be 150 000
 

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no here , must be 150 000
Sorry I'm confused as to how this isn't a good offer. is the housing allowance too low? because if the OP is earning 92K usd a year before tax, after tax he'd get about the same as he would for the Dubai offer.
 

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Discussion Starter · #10 ·
Sorry I'm confused as to how this isn't a good offer. is the housing allowance too low? because if the OP is earning 92K usd a year before tax, after tax he'd get about the same as he would for the Dubai offer.
I agreed with you on this, at the end, there isn't much jump on my salary but according to my company, I am suppose to get a 20% increase. This is what puzzle me because I don't see that at all. On top of that, I am loosing my wife salary.
 

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I agreed with you on this, at the end, there isn't much jump on my salary but according to my company, I am suppose to get a 20% increase. This is what puzzle me because I don't see that at all. On top of that, I am loosing my wife salary.
hmm well 20% of 92000 is around 18400 if my basic maths works out, however this needs to be worked out if its good, on what your 92000 is after tax. I don't know what the rates are in the US, in Australia it'd be close to 33% tax when you earn that high up.

From what I have heard or read I think your housing allowance is pretty good, however you would need more per month if you are maintaining your whole family. Can you negotiate with them on that?
 

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Discussion Starter · #12 ·
hmm well 20% of 92000 is around 18400 if my basic maths works out, however this needs to be worked out if its good, on what your 92000 is after tax. I don't know what the rates are in the US, in Australia it'd be close to 33% tax when you earn that high up.

From what I have heard or read I think your housing allowance is pretty good, however you would need more per month if you are maintaining your whole family. Can you negotiate with them on that?
In US it will be around 24% tax but as a US citizen, I am still responsible for paying income tax regardless where I work. I do get 92K tax free but as I understand, all the benefits will count as income, e.g. housing 48K, schooling $18k, Vacation Allowance $17k, 75K of my salary so as you can see, my housing alone took more than half of my exclusion. At then end of the year, I am still responsible for approximately around $60k of taxable income tax.
 

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In US it will be around 24% tax but as a US citizen, I am still responsible for paying income tax regardless where I work. I do get 92K tax free but as I understand, all the benefits will count as income, e.g. housing 48K, schooling $18k, Vacation Allowance $17k, 75K of my salary so as you can see, my housing alone took more than half of my exclusion. At then end of the year, I am still responsible for approximately around $60k of taxable income tax.
you have to pay tax even if you're living overseas? that's harsh. In Australia as long as you spend two years abroad you are not liable for paying tax, actually it may only be 90 days the law was just recently changed.
I'm sorry Sangweb then I don't think it's a good deal. There's got to be a way that if you live overseas then you're not liable for tax.
 
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