New US tax law
By JungleGirl •
Can someone explain to me how the new US tax law on income earned abroad might affect me? I'm well under the $80,000 limit (now raised to $82,400), but I've read that there are now complicated formulas to calculate the tax payed on housing allowances, and that this will affect people who live in places with high housing costs (like Doha). I don't get a housing allowance; I get free accommodation provided by my employer. How is this taxed?
I have been offered a job with $22.50 a day per diem. Can I eat on this in Qatar????????
Super thanks for imput!
I asked my employer to look into it and they have determined that it only applies to American companies with employees abroad. The company I work for is not American, so apparently it won't affect me.
Because housing is expensive in Qatar, the new tax law will cause Americans to have to pay a LOT more in taxes, but many of the employers will provide compensation to make up the difference. Here's a link about this issue: http://www.iht.com/articles/2006/05/25/business/tax.php
Here's one quote: 'Michael Abdalian, a tax partner at Ernst & Young, said he has spoken to many employers about the increased tax burden. "Most companies have programs designed to protect their employees from additional taxes," he said, so the expense will likely be borne by employers.'
So you will have to find out from your employer if they will cover the extra tax. My husband's employer is going to cover it, but we are waiting for his written salary offer to see for sure.