<p>chinabound, I think living and working in China would be an adventure that will only do you good, personally and professionally. </p>
<p>Yes, you get an $80K US tax exemption, and yes, your “income in kind” like housing is also taxed. Get an accountant who’s familiar with US expat returns. </p>
<p>I’m not knowledgeable about Chinese taxes, but I do know that many expat salaries are “net” in that the employer covers the local tax. If you take on extracurricular work be very careful of its impact on your visa. </p>
<p>Circumventing the law is a national past time in Asia, but it’s your life and your career, so you have to understand the consequences. AmCham is an excellent resource for contacts and advise.</p>
<p>Both Shanghai and Beijing are appealing. Shanghai is the money/business base; Beijing is the power/government base. Kind of like New York and Washington. </p>
<p>This job could lead to all sorts of opportunities – especially if you hone your language skills. The important factor is to maintain your expat status as local hires are often paid substantially less. </p>
<p>But don’t get ahead of yourself. Spend a year at this job, make contacts (your students’ parents will be a goldmine of connections), learn the language, do some traveling. Then you can think about your next move.</p>