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American digital nomad (not an accountant) here that transitioned an on-site w2 job in SF to full remote. state taxes: I initially moved to FL where there is n

by itake 9y ago

American digital nomad (not an accountant) here that transitioned an on-site w2 job in SF to full remote. state taxes: I initially moved to FL where there is no state income tax. I have a FL driver's license and mailing address. In FL, you do not have to file anything. federal taxes: I will qualify for FEIE [0] by being outside of the USA for the qualifying amount of time which basically means I do not have to pay federal income tax on my first ~$105k, but I still need to pay FICA. In theory, most countries that I visit, I probably should be paying their taxes, but since my money only stays in America, the risk of getting caught is very low. It is my understanding that there are things that can be done to get your taxes down to 0% if I was a contractor, but I don't make enough for me to take advantage of that. [0] https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore...

kbutler 9y ago
I was intrigued by the "Foreign Earned Income Exclusion". From that link https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore...: 2. Is your tax home* in a foreign country? ... b. No. You CANNOT claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction. * Tax home: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-tax-home-in-foreign-country https://www.irs.gov/individuals/international-taxpayers/fore... "Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. ... You are not considered to have a tax home in a foreign country for any period in which your abode is in the United States." The separate "physical presence outside the US for 330 days/year" is a later criterion, and is not relevant if your "tax home" is in the US.

by itake 9y ago

kbutler 9y ago

I was intrigued by the "Foreign Earned Income Exclusion". From that link https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/fore...: 2. Is your tax home* in a foreign country? ... b. No. You CANNOT claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction. * Tax home: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-tax-home-in-foreign-country https://www.irs.gov/individuals/international-taxpayers/fore... "Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. ... You are not considered to have a tax home in a foreign country for any period in which your abode is in the United States." The separate "physical presence outside the US for 330 days/year" is a later criterion, and is not relevant if your "tax home" is in the US.