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That's a good point. If you're lover of travel or foreign countries, then there are a number of different countries or economic zones that are similar tax have
by camz 15y ago
That's a good point. If you're lover of travel or foreign countries, then there are a number of different countries or economic zones that are similar tax havens. Singapore, Hong Kong and etc are tax havens that don't take foreign sourced income. You only pay tax on income earned from the country.
Also, singapore and hong kong have much lower tax rates. You'd be able to take a tax credit on foreign taxes paid in the US 1040 individual tax (this calculation is a little awkward though) or you could choose to exclude 90k+ of income entirely from you 1040 but you'd lose the foreign tax credit.
You need make the calculation to see which is the better tax savings. Obviously, if you're earning less than 90k then you should use that. But, to get the 90k exclusion you must remain without the US territories for the majority of the year.