Do US expats in UAE have to pay taxes?

It depends on your situation. If you are a US citizen living in the UAE and earning income, you may qualify for the Foreign Earned Income Exclusion (FEIE). For 2024, the FEIE allows you to exclude up to $126,500 of foreign-earned income, potentially reducing your taxable income to zero.

Do I still have to file a US tax return?

Yes, filing is mandatory for all US citizens and green card holders who meet the income thresholds, even if no taxes are owed.

What should I understand from this?

  • Assess Your Tax Situation: Evaluate your income levels and residency status each year.
  • Seek Professional Advice: Consult a tax professional experienced in expat taxation.
  • Utilize Benefits: Exclusions like the FEIE can significantly impact your tax liabilities. Stay informed and compliant with US tax laws.

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