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Post by Hadia on Oct 28, 2011 8:12:42 GMT
Hi Forum,
For those of you who have been Aramcons from the US for a couple of years or more...How did your US taxes pan out that first year when you arrived in KSA? In other words, if the employee is NOT out of the US for 330 days for that first year (say, started at Aramco in the middle of the year or whatnot), how messed up were your taxes that following spring? Is there a danger of getting hit with a big tax bill in April?
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Post by SugarLandTX on Oct 30, 2011 9:58:32 GMT
Short answer to your question is in general you will not be hit with a large tax bill next year. Assuming you started with Aramco in June 2011, you have to wait till June of next year before filing your taxes. In that 365 days you have to make sure to stay out of USA for at least 330 days. If you stay out all of 365 days it will be even better. Once you meet this 330 days requirement, you can claim prorated Foreign Earned Income EXCLUSION on your 2011 tax return.
Sometimes people can get a large lump sum amount when they leave their last job. This amount can be cash in lieu for unused vacation or bonus. This can add to your tax bill, but has nothing to do with working for Aramco. My guess will be if your previous employer withheld proper tax amount from your pay checks then your share to cover Aramco Wages/Compensation for last half of 2011 will be less than US $4000.
It is a complicated topic but I went through it in great detail becasue I joined last year and was concerned about may taxes which I filed this year. Ask me a specific question and I will try to answer you better. Also take a look at your salary slips. Add all the Hypo tax you have been paying for the last several months. This is your tax obligation to cover taxes for Wages/Compensation paid by Aramco.
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