AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants.
Visit my website at www.johnstancilcpa.com.
Also visit my blog, www.thetaxdocspot.com.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.
Education/Credentials DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
Question I took a job teaching in the UAE. I begin in August and will live and work in
the UAE for at least two years. I'm being paid by their Education Ministry in
dhirams which are deposited into a local UAE account. For the 2009 tax year I
have income from an American school. Do I add the income from the UAE to
this? Will I still be eligible for the $87,600 exclusion? The home and bona
fide residence thing won't kick in until 2010 when I am there for a full year.
The UAE, from what I understand, does not have income tax in teachers. How
will this tax on foreign income thing work for me? Thank you for your time
and answer.
Answer Victoria,
You will include all your income, from whatever source, on your 1040. Sometime, probably in April, you will meet the 330-day physical presence test and will qualify for the foreign earned income exclusion/credit.
However, you did not have a physical presence in a foreign country for the entire year so the exclusion will be pro-rated. Assume you were in the UAE for 122 days. Divide 122 by 365 and multiply it by the amount of the exclusion for the particular year to get the maximum amount you can exclude. You can only exclude foreign earned income - no investment income or income earned i the U. S.
