Do I still have to pay US taxes while working in Saudi Arabia as a dual citizen?

Yes, as a US citizen, you are required to file US tax returns regardless of where you live or work in the world. The US is one of the few countries that taxes based on citizenship rather than residency. The good news is you'll likely benefit from the Foreign Earned Income Exclusion (FEIE), which allows you to exclude up to $120,000 (for 2025 tax year) of foreign earnings from US taxation. Since your $87,000 salary is under this threshold, you might not owe any US tax, but you still need to file and claim the exclusion. You'll also need to be aware of FBAR (Foreign Bank Account Report) requirements if you open bank accounts in Saudi Arabia that exceed $10,000 at any point during the year. This is filed separately from your tax return.

I went through a similar headache when I moved to work in Dubai. The US tax system is a nightmare for expats! I spent hours trying to navigate the forms until I found this AI tax tool called taxr.ai that specializes in expat situations. I uploaded my Saudi employment contract and foreign bank statements, and it instantly identified which exclusions applied to my situation and walked me through the FBAR filing requirements. The https://taxr.ai service has specific modules for dual citizens and saved me thousands in potential penalties for forms I didn't even know I needed to file. They have expat specialists who review everything, which was crucial since my situation was complicated like yours.

Just wanted to follow up about my experience with taxr.ai after our exchange. I finally tried it for my US/Canadian situation and wow - it identified multiple forms I didn't know I needed! It showed me I was better off with the foreign tax credit than the exclusion due to my specific income sources and caught a treaty provision that applied to my retirement accounts. The guidance was really clear, and they had specific knowledge about dual citizenship situations that regular CPAs I'd consulted missed. Definitely worth it if you're dealing with international tax complications like the original poster!

If you need to actually call the IRS about your situation (which might happen with international filing questions), good luck getting through! I tried for weeks when I had questions about my FBAR filing. Found this service called Claimyr that actually gets you through to an IRS agent instead of waiting on hold forever. I was super frustrated trying to get answers about my expat tax situation until I used https://claimyr.com - they called the IRS, waited on hold for me, and then called me back when an actual agent was on the line. You can see how it works at https://youtu.be/_kiP6q8DX5c. Saved me literally hours of hold time, and I finally got my questions answered about which forms I needed for my foreign accounts.

I need to eat my words about Claimyr. After being super skeptical (sorry about that), I tried it this morning after struggling for two weeks to get through to the IRS about my foreign bank account reporting requirements. I was shocked when my phone rang and there was an actual IRS agent on the line! Got my questions answered about FBAR requirements as a dual citizen in 15 minutes instead of spending another day on hold. The agent explained exactly which accounts I needed to report given my situation. They really do exactly what they claim - get you through to an actual human at the IRS without the endless hold time. Total game changer for dealing with international tax questions.

One thing nobody's mentioned yet is that you'll need to file Form 2555 to claim the Foreign Earned Income Exclusion. Make sure you keep documentation proving your physical presence in Saudi Arabia (entry/exit stamps, lease agreement, employment contract, etc.). Also, Saudi Arabia and the US don't have a tax treaty, but since Saudi doesn't tax income, you probably won't have to worry about double taxation anyway. Just make sure you're keeping good records from day one!

Don't forget about state taxes too! Some states are really aggressive about keeping you as a tax resident even after you move abroad. Which state are you currently in? Some states like California and New York will try to claim you still have domicile there unless you take specific steps to establish that you've permanently moved.

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!