Have a Tax Question? Ask a Tax Expert
... still don't see you coming into the chat here, so let me answer generally ...
Lets start here. First US citizens must pay tax on all worldwide income
See this: http://www.irs.gov/Businesses/Income-from-Abroad-is-Taxable
Next, your needing to pay tax as a US citizen, starts with whether your income is above the standard (or itemized, If greater) deduction plus your personal (and any dependency) exemptions. ... And those numbers depend on whether you are married or single.
So, for example, the personal exemption is, for 2013: $3,900
And the standard deduction is 6100 for a single filer, and the 12,200 for those married filing jointly
SO depending on how you file, your threshold for owing tax would be 10,000 if you were single ... and goes up from there, if for example you are married filing jointly .... it would be 3900 for you 3900 for a spouse PLUS 12200 (20,000) before you'd have taxable income
Now, there is a Foreign earned income exclusion available on that return ... let me get you this years' number and requirements
See this, from H&R Block:
U.S. resident aliens living in a foreign country are subject to the same U.S. tax laws as those living in the United States. However, if you lived and worked abroad for most of the year, you might qualify for the foreign earned income exclusion. If you qualify, you can exclude up to $95,100 in income earned in 2012 while working abroad.
To qualify, you must have foreign-source earned income. All of these must apply:
now... those tests:
To be considered a bona fide resident, you must:
To pass the physical presence test, you must be present in a foreign country for at least 330 full days within a consecutive 12-month period.
And that's an either/OR on those two (either one will satisfy the requirement for the exclusion) ... and finally ...
The Foreign Earned Income Exclusion 2013 amount is $97,600, up from $95,100 in 2012.
looks like you're typing, so I'll wait
In the mean time here's an excellent article on international taxation for Americans. http://premieroffshore.com/foreign-earned-income-exclusion-2013/
... still don't see ya coming into the chat, so I'll move us to the "Question and Answer" mode ... Maybe that will help ... (We can still continue a dialogue there, just not in real-time as we can here)
Hope this has helped
Let me know if you have questions ...
I need clarification on time in country. I will spend 60-120 days in Saudi.I will definitely earn more than 95K off shore. Will this qualify me for the earned income tax credit?