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Are employer-provided housing benefits taxable in Qatar?

Yes, if your employer in Qatar covers your housing for the first six to twelve months or any period, this benefit is considered a non-cash benefit by the IRS.

The value of the housing provided by your employer is taxable and must be reported on your US tax return. This is because the IRS views these benefits as part of your compensation package, even though they are not received as direct income.

How are annual return flights treated for tax purposes?

Similarly, if your employer provides you and your family with annual return flights to the US, the cost of these flights is also considered a non-cash benefit. Like housing allowances, the value of these flights must be reported on your US tax return.

These benefits increase your taxable income and could potentially push your total income over the Foreign Earned Income Exclusion (FEIE) limit, leading to a tax liability.

What happens if non-cash benefits exceed the FEIE limit?

If the combined value of your salary and non-cash benefits, such as housing and flights, exceeds the FEIE limit (US$126,500 for the tax year 2024), you may be liable to pay US taxes on the excess amount.

This situation can create a tax burden for US citizenship holders who, despite not receiving these benefits in cash, must account for them as taxable income on their US tax returns.

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