Will I be paying taxes if I'm working over seas?

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Comments (11)

bigjakesrq in sarasota, Florida

67 months ago

So how does that work? I mean would I be filing under a 1099 or do I keep filing under a W4? They way I figure a 11 month contract would be 334 day so I would be able to not pay taxes except for S.S. and medicare, am I right?

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rnbotrt in Kalispell, Montana

67 months ago

I really don't know for sure, W-4 I would think, KBR gives you the choice on withholding income tax or not, so I would assume you still get a W-2. You gotta remember the 10 day R&R's every 4 months, if you come home to the states you have to be careful your not in the country for more than 35 days during a 12 month period. A recruiter would explain it a lot better, or look at irs.gov
I haven't worked for them yet, I go to Houston next weekend.

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rnbotrt in Kalispell, Montana

67 months ago

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John51071 in DeRidder, Louisiana

67 months ago

If you are out of the United states for 330 days during the 12 month period, not a calendar year, but a 365 day stretch, then your pay is tax free UP TO the first $80,000. After that you owe taxes on anything over, but not including the $80k. Just wanted to clarify the tax free thing. My wife and I both spent time working in Iraq and Afghanistan.

They will quote you a normal base pay, but that is based on a 40 your week. In Iraq and Afghanistan you get a 75% "uplift" on the first 40 hours...as well as the fact that you work 12 hours a day/7 days a week (84 hour work week). There is no overtime, but the uplift is like getting better overtime than in the US, just backwards (on the first 40 hours). Kuwait pays only a 35% uplift because it is not a declared war zone.

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Koko Wilson in Florida

65 months ago

usafgurl in Santa Maria, California said: I'm hoping someone can help me out. My husband worked in Iraq for KBR in MWR. He made a mistake filing our taxes for 2007 and now the IRS is saying we owe over $16,000. He made $68,802.72 which we assumed was tax-free income since it is under $80,000. Has anyone dealt with this before. Or is there any official documentation that we can send the IRS as proof that this income was tax-free. Any help is really appreciated! Thank you.

You are saying that he filed 2007 taxes this spring? Did you mean 2008–in Spring 2009? Was he out of country for 330 days? The count for this started from his wheel date–then count forward. His tax period should have fallen from that day–to 1 yr later. However he would need to file an extension for when April came around. If you didn’t file an extension there will be penalties–but no worries nothing like 16,000.

You need to get yourself to an accountant who deals with overseas work and tax exemptions for. If he was out of country for 330 days in a yr span, then he should qualify for the tax exemptions. An accountant will be able to file an amendment to the taxes you’ve all ready filed, to correct this.

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usafgurl in Santa Maria, California

65 months ago

No, this was for our 2007 taxes---they're just catching up to us. Yes, he was over there for over a year.

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Koko Wilson in Florida

65 months ago

Ok I do understand. You really do need to take them--even though he has already filed-- to an accountant familiar with overseas wages and tax exemptions. I promise you they will be able to help you. As mentioned an accountant will be able to file an amendment for you--so that you get your exemptions for the overseas wages. Make sure you take them all--yrs you are filing for and or need to file with you to the accountant.

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mellypryor in Fort Worth, Texas

59 months ago

I too have a tax ? My husband went over in September and we filled our taxes as normal last yr. So this yr we would amend them, correct? The 330 days starts when he left? Also why a CPA AND not just H&R Block?

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Melinda Pearson in Woodstock, Georgia

59 months ago

mellypryor in Fort Worth, Texas said: I too have a tax ? My husband went over in September and we filled our taxes as normal last yr. So this yr we would amend them, correct? The 330 days starts when he left? Also why a CPA AND not just H&R Block?

H&R Block may not know all the rules regarding EXPATS and that can cost you big money.... Go to www.palazzocpa.com... This company specializes in foreign worker taxes. I am not kidding - this is all they do. They handle alot of KBR employees. Tell them Melinda Pearson referred you if you don't mind. Last years taxes costed me $450.00 but it was well worth it. There is a formula that the government requires to be used. Don't EVEN try to figure it out on your own. These really are specialized taxes. I have heard horror stories from other people that had H&R handle them and ended up having a mess to straighten out.

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Chuck in San Pablo, California

23 months ago

John51071 in DeRidder, Louisiana said: If you are out of the United states for 330 days during the 12 month period, not a calendar year, but a 365 day stretch, then your pay is tax free UP TO the first $80,000. After that you owe taxes on anything over, but not including the $80k. Just wanted to clarify the tax free thing. My wife and I both spent time working in Iraq and Afghanistan .

They will quote you a normal base pay, but that is based on a 40 your week. In Iraq and Afghanistan you get a 75% "uplift" on the first 40 hours...as well as the fact that you work 12 hours a day/7 days a week (84 hour work week). There is no overtime, but the uplift is like getting better overtime than in the US, just backwards (on the first 40 hours). Kuwait pays only a 35% uplift because it is not a declared war zone.

Does this count even if your a DOD Employee and your address is still in the US.

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Chuck in San Pablo, California

23 months ago

Does this apply if you are or work for the DOD and still have your address in the US

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