Whatever the US would tax you, minus what the Saudis taxed you, via the Foreign Tax Credit. Why it is that way? BECAUSE THE US DOESN'T HAVE A RECIPROCAL TAX TREATY WITH SAUDI ARABIA."
Which would be $0 as the income is exempt as it is earned overseas. The Foreign Tax Credit which is you hung up on is irrelevant as the Saudis don't have an income tax, which I already linked to for you. As a result, there is zero need for a reciprocal tax treaty as the Saudis don't have income taxes (for about the 3rd time).
So, again, as I stated from the get go, these government waste of spaces skip out on their tax obligations despite sucking on the government teat. How much more do you want to embarrass yourself today on this issue? Go play internet tax super star with one of your ignorant libbies because everyone else can see you are clueless on this issue.
#32 | Posted by MidtownLandlord at 2017-11-27 11:01 AM | Reply
Sorry to continue this digression, and I won't reply further, but here is the actual words from the IRS:
1. U.S. Government Civilian Employees Working Overseas
If you are a U. S. citizen working for the US Government, including the Foreign Service, and you are stationed abroad, your income tax filing requirements are generally the same as those for citizens and residents living in the United States. You are taxed on your worldwide income, even though you live and work abroad. However, you may receive certain allowances and have certain expenses that you generally do not have while living in the United States.
U.S. Foreign Service Employees
If you are an employee of the US Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction if you meet certain conditions. For more information, refer to U.S. Foreign Service Employees.
Found here https://www.irs.gov/individuals/international-taxpayers/us-government-civilian-employees-stationed-
I've read through the section U.S. Foreign Service Employees as well. There is no mention there of exclusion of foreign-earned income, no $102k, no $140k. Primarily because they aren't considered as earning foreign income. If they had a second job earning income from a foreign source (which is generally frowned upon for government employees), they might be able to exclude some of it based on if there is a reciprocal tax agreement; however, the pay they receive from the State Department is not considered foreign income, and is taxed as US-based income. At least that's what it says on the IRS website. Maybe, just maybe, the rules for commercial workers is different from those for State Department employees, maybe?