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US Taxes Question

Last activity 22 May 2012 by GuestPoster22

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jyurong

Quick question about taxes for a US citizen in Saudi. I am aware of most of the caveats, but I had a particular question about the 330 day rule for tax exemption. If I am traveling back to the US on business only, does this count against my time? I am working at a University over here and I need to travel two separate times for about a week each to meet attend an Education conference and to meet with a couple of other universities for consortium agreements.

If I do this, does it count against my "In Country" time? Does this mean that when I get my 30 days vacation I cannot go back to the US for the full 30 days?

Alliecat

In country is IN country.  Sorry, but yes, that's what it means.

Alon Injed

I SUGGEST YOU TALK TO A TAX SPECIALIST AS THE ANSWER ABOVE IS NOT QUITE CORRECT IN MY INTERPRETATION.  READ IRS PUBLICATION 54 CHAPTER 4 (YOU CAN DOWNLOAD OFF THE IRS SITE).  YOU MUST MEET THREE DISTINT REQUIREMENTS.  THE FINAL REQUIREMENT CAN BE MET BY ANY ONE OF THREE CONDITIONS OF WHICH ONE IS BEING PHYSICALLY PRESENT IN THE FOREIGN COUNTRY FOR 330 DAYS IN ANY TAX YEAR.  HOWEVER THERE ARE TWO OTHER CONDITIONS WHICH ALSO MAY BE USED.  THE SECOND IS IF YOU ARE A BONA FIDE RESIDENT OF A FOREING COUNTRY OR COUNTRIES FOR AN ENTIRE TAX YEAR. THE FINAL ONE IS FOR US RESIDENTS AND HAS TO DO WITH TAX TREATIES.    IF YOU MAINTAINED A FULL TIME RESIDENCE HAD AN IQUAMA AND A DRIVERS LICENSE, HAD AUTO INSURANCE AND MAINTAINED A BANK ACCOUNT AS WELL AS OTHER THINGS WHICH ESTABLISH THIS COUNTRY AS YOUR PERMANENT PLACE OF RESIDENCE THE EXAMPLE IMPLIES YOU ARE ENTITLE TO THE EXCLUSSION EVEN THOUGH YOU MIGHT NEED TO MAKE MULTIPLE TEMPORARY TRIPS TO THE US FOR BUSINESS.  I WANT TO EMPHASIZE I AM NOT A TAX ACCOUNTANT AND I AM STRUGGLING WITH THE SAME IDENTICAL QUESTION RIGHT NOW SO I HAVE BEEN READING AS MUCH AS I CAN AND QUITE FRANKLY THE GOVERMENT PUBLICATIONS ARE THE LAST PLACE TO GET A CLEAR DIRECTION.   LOOK AT EXAMPLE 2 ON PAGE 12 OF THE NOTED PUBLICATION AND FOLLOW THE CHART ON PAGE 13 IT IS VERY CLEAR TO ME YOU DO NOT HAVE TO BE PRESENT AS LONG AS YOU MEET THE FOREIGN RESIDENCE REQUIREMENT.   GOOD LUCK AND IF I AM WRONG PLEASE CORRECT ME.

Alon Injed

PLEASE ALSO READ PAGE 15 PHYSICAL PRESENSE TEST.  THE WAY IT READS YOU MUST BE PRESENT IN THE FOREIGN COUNTRY 330 DAYS IN ANY CONSECUTIVE 12 MONTH PERIOD.  IT DOES NOT HAVE ANY MENTION OF A TAX OR CALENDER YEAR BEING REQUIRED.   AGAIN A GOOD TAX CONSULTANT IS A MUST.  FOR ME AT LEAST I MEET BOTH CONDITIONS AS WRITTEN.

Christine

@Alon Injed- you should avoid using your caps on the forum. Thank you.

GuestPoster22

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