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Originally Posted by sian.dallaway What is the name of your state (only U.S. law)? GA
My husband and I moved here on his H-1B visa in 2001 and we and our four children received green cards in 2005. He has spent the last four months working in Abu Dhabi for an American company. He is now to take a local (Abu Dhabi) contract with the same company for two years, while the rest of us remain in America. He will not have US tax deducted from his paycheck. I work for another US company here on the strength of my green card.
Question - is he liable for US tax for his entire salary? The amount he sends back here to pay the mortgage etc.? Or should he forfeit his green card? If he does that will the rest of us forfeit ours as well? Any advice would be very welcome!What is the name of your state (only U.S. law)? |
He will have to include his entire income on your joint tax return. However, because he is working abroad you will be able to exclude approx 84k of his income from US income tax, and will be able to take a foreign tax credit for any foreign taxes he pays on the amount above 84k.
Therefore, he should not have any double taxation. His foreign income exclusion for 2009 will be prorated however, since he will not have worked there for the entire year.
Make sure you use a tax professional experienced in handling foreign income exclusions, as the paperwork is fairly complicated.