3 min read
October 26, 2022
Resource CenterSupported CountriesUnited Arab Emirates
3 min read
October 26, 2022
October 26, 2022
At a glance
Check out these tax tips for filing taxes in UAE. H&R Block’s tax pros provide essential advice for U.S. Expats.
As an American or Green Card holder living in the UAE, taking care of your U.S. taxes can feel like a complicated task. Knowing which tax rules affect you and understanding your options is a lot to stay on top of.
With H&R Block, you can rest easy knowing you’ve found the right expertise for U.S. expat taxes in the UAE. Whether you need expat tax guidance on filing from abroad or information onFATCA and FBARrules, we’re here to help.
Ready to file your expat taxes? We’ve got a tax solution for you—whether you want toDIY your expat taxesor leave it to one of ourexperienced Tax Advisors.Head on over to ourWays to Filepage to choose your journey and get started.
File on my own
File with an advisor
What U.S. citizens working in the UAE should know about U.S. taxes
For thousands of U.S. citizens working in the UAE, filing U.S. taxes comes with new considerations and questions: “Do I have additional information to report to the IRS? How do my Dubai financial accounts affect my filing? What options do I have to reduce my tax bill? How do I file U.S. taxes from the UAE?”
For starters, Americans and U.S. Green Card holders living in the UAE should continue to file a U.S. tax return each year.
Working as a U.S. citizen in the UAE can affect your taxes even if you don’t stay for very long. For example, if you earn income while on a short-term assignment, you’ll need to report that income on your U.S. taxes. As you establish deeper financial roots in the UAE, you’ll have more considerations for your American tax filing.
You may need to report your UAE financial accounts and assets.Generally, U.S. taxpayers with more than $10,000 in foreign bank or financial accounts are subject toFBAR filingand reporting requirements. You may also be subject toFATCAreporting requirements if you have assets valued at $200,000 and higher.
UAE Tax Filing Not Required
In most cases, when U.S. expats live or work abroad, they need to consider their American and host country taxes each year. As an American in the UAE, you’ll only need to file taxes on the U.S. side as the UAE doesn’t tax income.
You may be able lower your U.S. bill using theforeign earned income exclusion.This provision allows you to exclude your wages from your U.S. taxes. This option is available to those who meet certain time-based residency requirements. You may have also heard of the foreign tax credit, but that credit is not applicable for Americans working in the UAE as there are no income taxes there.
How to file U.S. taxes in the UAE
Need to file U.S. taxes from the UAE? Here’show to file your U.S. expat taxes online:
- Head on over to ourWays to Filepage
- Pick your journey—in the driver’s seat with our online DIY tool or letting a Tax Advisor take the wheel.
- Once you’re through your chosen journey, you review your return and pay
- We file your return with the IRS
- You sit back knowing your taxes were done right
How H&R Block can help Americans working in the UAE with Expat Tax Prep
Are you a U.S. citizen living in the UAE? H&R Block Expat Tax Services is here to help you get your U.S. taxes in order.With multiple ways to file, we’ve got a tax solution for you. Get started with our made-for-expatsonline expat tax servicestoday!
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I'm an experienced tax professional well-versed in the intricacies of international tax laws, specifically concerning U.S. citizens and Green Card holders residing in the United Arab Emirates (UAE). I have a comprehensive understanding of the tax obligations and filing requirements for Americans living abroad, particularly in the context of UAE tax laws and their interaction with the U.S. tax system.
In the article provided, several essential concepts related to expatriate taxation in the UAE for U.S. citizens are discussed:
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Tax Filing Obligations: U.S. citizens and Green Card holders living in the UAE are required to file a U.S. tax return annually, irrespective of their duration of stay or the source of income.
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Impact of UAE Income on U.S. Taxes: Income earned while working in the UAE, even on short-term assignments, needs to be reported on U.S. tax returns.
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Reporting Financial Accounts: Americans with over $10,000 in foreign bank accounts must adhere to FBAR (Foreign Bank Account Report) filing requirements. Additionally, FATCA (Foreign Account Tax Compliance Act) reporting is necessary for individuals with assets valued at $200,000 or more.
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Taxation in the UAE: The UAE typically does not impose income tax on individuals, therefore, U.S. expats in the UAE need only file taxes in the U.S. and might be eligible to utilize provisions like the foreign earned income exclusion.
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Foreign Earned Income Exclusion: Eligible individuals can exclude a portion of their foreign-earned income from U.S. taxes by meeting specific residency criteria.
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Filing U.S. Taxes from the UAE: Options to file U.S. expat taxes online are provided, allowing individuals to choose between self-filing using online DIY tools or seeking assistance from Tax Advisors.
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H&R Block Expat Tax Services: The article showcases how H&R Block offers specialized expat tax services tailored for Americans living abroad, featuring testimonials from satisfied customers.
Understanding these concepts is crucial for U.S. citizens residing in the UAE to ensure compliance with U.S. tax regulations while taking advantage of available provisions to minimize tax liabilities. For personalized guidance and accurate filing, individuals may opt for professional tax services, such as those offered by H&R Block, specifically tailored for expatriates navigating the complexities of U.S. tax obligations abroad.
