# Hypothetical US Tax Calc



## UStoUAE (Jul 11, 2018)

Hello All,

I am new to this forum and read a few threads. Amazing and helpful community and looking forward to contribute in future.

I am currently in process of accepting a job in UAE and will be moving later this year. 

I have a quick question on potential taxes and need some help to calculate tax due to US.

Let's say my pay package is:

Base Salary - $130,000
Expat Allowances - 50,000
Housing - $50,000
Schooling - $15,000

so total package comes down to $245,000.

What will be my tax due to US assuming I am married with two kids, wife not working, stayed more than 330 days in UAE.

Thanks for your help.


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## Bevdeforges (Nov 16, 2007)

With the recent changes in the tax law coming into effect for 2018, it's getting a bit tricky to do a ballpark just now. Plus, your taxes for 2018 will depend on exactly when you move to the UAE and start your job.

But, you should be eligible for the Foreign Earned Income Exclusion, which will exclude the first $100,000 or so of your salary income. (I'm not sure if the amount of the exclusion has been set for 2018.) Though you'll have to allocate that to the number of days in 2018 you're overseas.

Probably best to take a look at last year's edition of Publication 54 - at least to get a feel for the FEIE and how it works. There are some tax tables available on the IRS website for 2018 - and don't forget that there is no more "personal exemption" but just a larger standard deduction.
Cheers,
Bev


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## UStoUAE (Jul 11, 2018)

Thanks. 

I am not worried about 2018 since I will be out for 60-90 days max and can get pro-rated exemptions.

I am more worried about 2019 since I will be out for the entire year.

How much housing allowance can be used for exemption?


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## Bevdeforges (Nov 16, 2007)

You'll need to check Pub 54 for the details on housing allowance and all that. https://www.irs.gov/publications/p54 Unfortunately, the 2018 version of the publication isn't out yet - but I don't believe anything about the FEIE nor the housing allowance has changed with the new tax laws. 
Cheers,
Bev


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## UStoUAE (Jul 11, 2018)

Thanks. Wish IRS had a calculator that calculates hypothetical scenarios.


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## Bevdeforges (Nov 16, 2007)

UStoUAE said:


> Thanks. Wish IRS had a calculator that calculates hypothetical scenarios.


I see on the IRS website that they have a calculator to see if you're having enough withheld - but I suspect that it won't factor in the FEIE and/or the housing allowance, as you'd need to do in your situation. I suspect some sort of tax calculator may become available closer to the end of the year - but again, the IRS calculator probably won't have any ability to work with the FEIE or housing allowance.

Normally, folks can use "last year's" tax prep software to get an idea what they might owe, but with some of the changes for 2018 that isn't going to work out very well.
Cheers,
Bev


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