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[quote=Anonymous][quote=Anonymous]How difficult is tax season for you, reporting foreign income and all that, or is it rather simple checking some boxes and filling in the amounts?[/quote]

The taxes are complicated because we have to report both overseas and US income and the US income comes from multiple sources (rental property, investment portfolio). It's primarily a pain to make sure everything's reported correctly. I don't think it's more complicated than someone in the US with multiple income sources.

The real problematic issue with filing the tax returns are not necessarily for expats working overseas temporarily but for long term residents of other countries who also hold US citizenships. To use as an example, I have a family friend who has lived in the UK since the 1960s, has only ever worked in the UK, is married to a British, but the US tax code requires her to declare her UK pension as income on the US tax forms and her husband's pension and other income also needs to be factored in. I don't remember all the details but there was unfairness in that the spouse's UK assets were having to be declared to the US tax authorities even though he wasn't a US citizen. Fortunately enough it wasn't so much that they had to pay extra taxes but it still had to be reported for her to remain in good standing.

Most American expats in Dubai are jealous of the British expats because they don't have to report any of their overseas income. Not one penny. Have an income of a million a year in Dubai? It's tax free. Because Dubai has no income tax. [/quote]

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