Living and working overseas is both exciting and challenging. However, one of the challenges should not be the filing of a tax return. US citizens and permanent residents (Green Card Holders) are taxed on their worldwide income. The US is one of the only countries that require their citizens to file annual tax returns while working abroad.
The International Revenue Service (IRS) considers not just base salary to be income, but also foreign allowances that are commonly paid in the Middle East such as housing, dependent education, home leave airfare, overseas premium or cost of living, etc. Failure to report these items as income may mean penalties if your return is audited and it is determined that your income is under-reported.
PwC has a team of knowledgeable experts based in Qatar, Saudi Arabia, the United Arab Emirates and Lebanon that specialise in US individual income tax consulting and compliance. We have the capability to handle the most complex of returns efficiently and competently. Please feel free to contact us for additional information or assistance.