# US-Dubai Tax question?



## dontbuy (Jan 31, 2014)

Hello,

I've taken a full time position in Dubai.

I'm American but have Dual Citizenship - Irish/US.

I had been working in the UK the last 2.5 years and paying taxes there and no taxes in the US.

When I negotiated the job in Dubai - I believed I would pay no taxes as I assumed I'd obtain my visa through my Irish Passport.

However, my company said it was easier to attest all my documentation through the US as I was born and educated there... so my visa is with my US Passport.

I didn't think about the tax implications?

What are they?

I am living full time in Dubai and will not be working or living in the US for at least two - three years... Is it the same as with the UK? Where I have to file but not pay taxes being out of the country for over 330 days? Is that the correct number?

Thanks


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## BBCWatcher (Dec 28, 2012)

It's very easy. You still have U.S. tax and financial reporting obligations since you are a U.S. person. Your possession of other citizenships is immaterial -- with very rare tax treaty exceptions that do not apply to living and working in Dubai.

Any more questions?


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## DavidMcKeegan (Aug 27, 2012)

BBCWatcher is correct, it does not matter what you are doing or in what country you are doing it, as an American citizen you need to file a return every year (so you should have been filing while working in the UK as well). 

In Dubai your best way to avoid US taxes on your income is via the FEIE and the housing allowance. The easiest way to qualify for the FEIE is to be abroad for over 330 days in any 365 day period. If you pass the 330 day test, then you will be able to exclude around 99K from being taxed in the US. If your income is below that level, then you will not owe the US anything in taxes. However if your income is higher, you will have to try and use other deductions such as the housing allowance, etc.

If, even after using all available exclusions, you still have not excluded your full income, then you will be taxed by the US on that remaining income.

I hope this helps!


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