I've been offered a job in Bermuda. A few (well more than a few) questions. The salary will be in 6 figures.
1) Assuming I take the Foreign Earned Income Exclusion, does this basically mean that I just reduce my taxes by the amount of tax I would pay on the first $92,000 of taxable income?1a) My wife also works abroad, making about $80,000. Could we both take the FEIE and exclude $172,000? This would seem to make it more valuable since the $80,000 she would exclude would be in a higher tax bracket.
2) The company has a defined contribution retirement plan. Normally I think of a plan like this as being taxable when the money is taken out, but not on the contributions or investment earnings. But how would this work for a company in Bermuda?3) My compensation includes a housing allowance. This will just be taxable income like other compensation?
4) I don't think I get an earnings statement. Do I just report whatever they pay me? Presumably since nothing will be withheld, I have to make estimated tax payments? How (if at all) will IRS verify what my taxable compensation is?5) I have a small consulting business (annual revenues in low 5 figures). In the past, since I was making the FICA maximum at my day job, I only had to pay
2.9% self-employment tax. Will I now have to pay the full 15.3%?Any other particular items I should be thinking of?