Happy Tax Day, Digital Nomads! Here’s How You Can Legally Decrease Your Taxes
How does tax day work for digital nomads like travel photographers? File this one under “good to know.” Digital nomads often end up paying way too much in US taxes that they are not legally obligated to pay.
But on the other end of the spectrum, many assume that living outside the US means they don’t have to file US taxes at all. In this video from Nomad Capitalist, Andrew covers the sad reality of US taxes: as long as you’re a US citizen and hold a US passport, you must file. No exceptions. However, you may be able to claim the Foreign Earned Income Exclusion on your US taxes to reduce your tax burden substantially, possibly altogether!
You definitely don’t want to get a postcard from Uncle Sam, so if you plan to take the Foreign Earned Income Exclusion, get in touch with a CPA who specializes in expat tax law. When you can save potentially tens of thousands of dollars, it’s worth spending a little for someone who knows what they’re doing. Consider this yet one more incentive to hit the road indefinitely and take your photography around the world!
Note: this does not constitute legal or financial advice. Seek the help of a professional accountant for any questions.
Lead image by Pixabay user geralt, used under Creative Commons.
Video of The US tax mistake digital nomads are making