Do you have to pay tax on earnings out of the U.S. such as in Saudi Arabia?

Answer 1

Yes. US citizens and residents are taxed on their world-wide income regardless of where it was earned or where they live.

If you live and work outside the US, you may be able to exclude some or all of your Foreign Earned Income from US taxes OR take a credit for foreign income taxes paid.

See IRS Pub 54 for further information. Here's a link: http://www.irs.gov/publications/p54/index.html

Answer 2

No, it is tax free.