What is the filing threshold for US expats in Saudi Arabia?

If you’re earning between $50,000 and $70,000 in Saudi Arabia, your US tax situation depends on factors like your residency and income type.

What income is taxable when living abroad?

  • Income Source: Income earned from work done outside the US is key.
  • Time Spent Abroad: Spending at least 330 days out of 12 months in Saudi is crucial for tax purposes.

Meeting these criteria could allow you to use the foreign-earned income exclusion, letting you exclude up to $126,500 of income from US taxes in 2024. For instance, earning $60,000 and being in Saudi for over 330 days could mean no US taxes on that income.

Does the exclusion limit increase?

Yes, the foreign earned income exclusion amount increases yearly to adjust for inflation, potentially allowing you to exclude more income each year.

Is there a limit on housing deductions?

In Riyadh, you can deduct up to $40,000 for housing. However, the IRS adjusts these limits periodically for inflation and living cost changes. Housing deductions cover more than rent, including utilities (excluding phone bills), personal insurance, leasing fees, renting furniture, and some repairs.

Can I use the standard deduction?

Yes, you can also use the standard deduction. For 2024, it’s $13,850 for single filers, which can further reduce your taxable income.

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