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What is GOSI?

GOSI stands for the General Organization for Social Insurance, a program in Saudi Arabia that functions similarly to social security in the United States. Both employers and employees make contributions to this program, which covers various benefits such as retirement, disability, and unemployment.

How does GOSI affect US tax returns?

For US citizenship holders living and working in Saudi Arabia, the portion of their income contributed to GOSI can have tax implications back in the US.

Specifically, the employee’s contributions to GOSI can be claimed as a credit on their US tax return. This can potentially reduce the amount of tax owed to the IRS.

The Lack of a Totalization Agreement

It’s important to note that Saudi Arabia and the United States do not have a totalization agreement, nor do they have a tax treaty. Totalization agreements are designed to avoid double taxation on social security for people who work abroad.

However, despite the absence of such an agreement between Saudi Arabia and the US, American expats can still claim their contributions to GOSI as a credit on their US tax returns.

Claiming GOSI Contributions on Your Tax Return

When preparing your US tax return, you can include the amount you’ve contributed to GOSI as a credit. This process is somewhat akin to claiming a deduction for social security payments in the US, although the mechanism for claiming this credit may differ due to the lack of a formal agreement between the two countries.

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