Welcome to the expat tax world! I've been living in the UAE for 3 years now and went through the exact same confusion when I first moved. The advice here is spot-on - you'll definitely need to file US returns annually regardless of your dual citizenship status. One additional thing to consider: since you're moving to a zero-tax jurisdiction like Saudi Arabia, you won't have any foreign taxes to credit against your US liability. This makes the Foreign Earned Income Exclusion even more valuable for you compared to expats in high-tax countries who might benefit more from the Foreign Tax Credit. Also, start thinking about your banking situation now. Many US banks will close accounts for expats due to compliance issues, so you might want to research expat-friendly banks or credit unions before you move. And definitely keep a US address (family/friend) for banking and IRS correspondence - a lot of financial institutions require it. The learning curve is steep but manageable once you get the hang of the annual filing requirements. Good luck with the move!

This thread has been incredibly helpful! As someone who's been considering a similar move to the Middle East for work, I'm realizing there are so many tax implications I hadn't considered. @Daniel Price - one thing I'd add to all the great advice here is to consider getting professional help for at least your first filing as an expat. The learning curve is steep and the penalties for missing required forms (like FBAR or Form 8938 for foreign financial assets) can be severe. Even if you use one of the AI tools mentioned, having a tax professional review everything the first year can give you peace of mind. Also, since you're moving so soon, make sure to notify the IRS of your address change using Form 8822 once you're settled in Saudi Arabia. This ensures you receive any important correspondence at your new address abroad. The dual citizenship aspect really doesn't change your US tax obligations at all - the US taxes based on citizenship, not residency. But the silver lining is that with Saudi's zero income tax and your salary being under the FEIE threshold, you'll likely owe no US taxes while still maintaining compliance. Just don't forget about the filing requirements!

Quick question - does the effective tax rate calculation include state taxes too? My marginal federal rate is 22% but my state adds another 6%. Should I be looking at combined effective rate or keep them separate?

Great question! I think you're getting hung up on the mechanics when the real value of effective tax rate is in decision-making. Your calculation is absolutely correct - you'll owe about $3,424.50 in federal taxes. But here's why effective rate matters: it tells you that you're only paying 7.9% of your total income in taxes, not the 12% that your tax bracket suggests. This distinction becomes crucial when you're making financial decisions. For instance, if someone offers you a $2,000 bonus, you might think "oh no, that's taxed at 12%" and worry about owing $240. But in reality, that bonus only increases your effective rate slightly (from 7.9% to about 8.2%), and your overall tax burden remains much lower than that 12% bracket would suggest. Understanding your effective rate helps you see the bigger picture of your tax situation and avoid the common mistake of thinking all your income gets taxed at your highest bracket rate.

3 I've been betting on sports apps for years and honestly never filed in other states. Just reported everything on my home state return. No issues so far, but sounds like I might be doing it wrong?

This is a really complex area that trips up a lot of people! Based on what I've seen, you're right to be concerned about proper reporting. Generally, you do need to file non-resident returns in states where you were physically present when placing winning bets, regardless of whether it was through an app or at a physical location. The key factor is your physical location when the bet was placed, not where the sportsbook is licensed. However, there are some practical considerations that might help: 1. Many states have minimum filing thresholds for non-residents (often $1,000-$2,500) 2. You'll get credit on your PA return for taxes paid to other states to avoid double taxation 3. Some of your out-of-state winnings might fall below reporting thresholds For your $8,500 in winnings, I'd recommend getting the location data from each sportsbook (most can provide this if requested) and checking each state's non-resident filing requirements. You might find that you only need to file in 1-2 states rather than all of them. The "state sourcing" question in your tax software is asking exactly this - where the income was earned geographically. Don't guess on this one since the penalties for incorrect state filing can add up quickly.

I totally get your anxiety about this message! I've been through this exact scenario twice in the past few years and it's nerve-wracking every time. That "return under review" status is actually more common than you'd think - the IRS processes millions of returns and a significant portion go through some level of review. From my experience, this message usually appears when they're doing routine verification checks - things like cross-referencing your W2s with what employers reported, or making sure your deductions align with their databases. It's not necessarily a red flag that something's wrong. That said, definitely keep an eye on your mail over the next 2-3 weeks. If they do need something from you, the notice will be pretty specific about what documents or clarification they're looking for. In my cases, one time it resolved on its own after about 12 days, and another time I got a simple CP12 notice asking me to verify my identity online (took like 5 minutes). The waiting sucks but try not to stress too much - most of these reviews end up being routine processing delays rather than actual problems with your return. Keep checking periodically but don't drive yourself crazy with daily app refreshes! 🙂

I've been in the exact same situation and completely understand the anxiety! Got that same message word-for-word about 6 months ago and was convinced something was wrong with my filing. Turns out it was just a routine income verification - the IRS was cross-checking my reported income with what my employer submitted. The whole process took about 16 days total before my refund was approved and processed. Never got a notice in the mail, it just updated one day to "refund approved" and I had my money within a week after that. What helped me stay sane during the wait was remembering that the IRS processes over 150 million returns each year, and a huge percentage get this review status. Most of the time it's just their systems doing automated checks to make sure everything matches up in their databases. Try to avoid checking the app more than once every few days if you can - I was refreshing it multiple times daily and it just made the waiting worse! The status will update when there's actual news to report. Hang in there! 💪

On March 15, 2024, I successfully challenged a similar offset by proving an accounting error. Instead of disputing the entire offset, focus on verifying the exact amount. On January 22, I requested a full accounting from my state agency, which revealed they hadn't credited four payments made between October 3 and December 28 last year. If you can't stop the offset entirely, you might qualify for a hardship reduction under the Consumer Credit Protection Act if the offset exceeds 65% of your disposable income. This won't eliminate the offset but could reduce the amount taken.

Based on my experience with Treasury Offset Program disputes, here are the key points to understand: **Yes, you can contest it, but success depends on specific circumstances:** • **Grounds for successful challenges:** Accounting errors, payments not properly credited, identity mix-ups, or incorrect debt amounts • **What typically WON'T work:** Simply being on a payment plan or claiming financial hardship (unlike student loans) • **Time is critical:** Most states have 30-65 day windows from the offset notice date **Your action plan should be:** 1. Request your complete payment history and debt calculation from your state's child support enforcement agency 2. Cross-reference this with your own payment records (bank statements, receipts, money order stubs) 3. If you find discrepancies, file a written administrative review request immediately 4. Document everything with dates, reference numbers, and contact names **Form 8379 note:** This injured spouse relief form won't help with child support offsets - it's specifically for when your spouse's debt causes your refund to be taken. The reality is that child support offsets have fewer escape routes than other types of debt offsets, but if there's a legitimate error in the amount owed or payment crediting, you have a fighting chance. Focus on the numbers and documentation rather than circumstances.