This is chapter 5 of a 15 part series about digital nomading and location independence. To see all of the other chapters, click here!
- If you’re not American, I recommend speaking with an expat tax lawyer in your country or hunting for information on Google. I couldn’t find a great guide for non-Americans – maybe I’ll create one in the future. 🤷♂️
- The United States is one of the few countries that taxes non-resident citizens. This means even if you’re not in the U.S., you have to pay normal U.S. taxes unless you qualify for a Foreign Earned Income Exclusion (FEIE).
- To qualify, you must spend over 330 days abroad in any rolling 365-day period. If you qualify for the FEIE, your first ~$100k of wages or self-employment income is tax-free.
- Planning to nomad for an extended period? I recommend switching your residency to an income tax-free state. There’s no point in paying income tax to a state while living abroad. Income tax-free states include Alaska, Florida, South Dakota, Texas, Washington, and Wyoming.
To learn more, here is a detailed guide on switching your state residency and here is more information about the Foreign Earned Income Exclusion.