this post was submitted on 07 Nov 2024
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why: so the government won't be able to use your money for whatever the fuck they're planning for the next 4 years.

as a traveler, none of my money has been funding Israel, for example.

one-step method: you basically fill out one extra tax form called FEIE while you're doing your taxes, write down the dates you were outside of the country, and then since you aren't in the country and are not receiving any services from the US, you don't have to pay income tax up to a certain amount (it's a little over 125k this year).

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[–] voracitude@lemmy.world 141 points 1 week ago (15 children)

But if you earn over the threshold, you're expected to pay taxes to the US government, no matter where you're actually living or working, no matter if you're also paying taxes wherever you currently are. The US is the only country in the world to assert that it has the right to tax its citizens remotely in this manner. It's not normal.

[–] thefactremains@lemmy.world 67 points 1 week ago (2 children)

The US has double taxation treaties with over 60 countries. When you pay taxes somewhere else, you deduct all of that tax from your US taxes above the $125k.

Though I definitely agree the IRS shouldn't need these treaties, because if you're not living there, why should you even need to file?

[–] sunzu2@thebrainbin.org 25 points 1 week ago (1 children)

Because US law says so lol

Y'all just now learning that laws are written for the benefit of the ruling regime, not the peasants.

[–] Aatube@kbin.melroy.org 19 points 1 week ago

There were only “two parties in all States,” Randolph concluded. “The ins and the outs.” The ins construed governmental power broadly for the gain of their own “patronage and wealth,” while the outs tried to limit such power. “But let the outs get in . . . and you will find their Constitutional scruples and arguments vanish like dew before the morning sun.”

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[–] teft@lemmy.world 23 points 1 week ago (18 children)

They also charge you a crazy exit tax if you want to give up citizenship in order to save on taxes. They always get their pound of flesh.

[–] koper@feddit.nl -4 points 6 days ago
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[–] Varyk@sh.itjust.works 11 points 1 week ago* (last edited 1 week ago)

"over the threshold, you're expected to pay taxes"

sort of, that's the "up to 125k" limit part of the FEIE(readjusted for inflation every year).

you still don't pay taxes on the first 125k.

earning more than 125k is not a problem most people have.

The problem most people have is not knowing that the feie exists in the first place and there are legal, straightforward ways to avoid paying income tax while saving money traveling.

"no matter if you're also paying taxes wherever you currently are..."

this is very iffy and depends on a lot of factors.

again, for most regular people, foreign income tax credits will erase most financial duties to the US.

"The US is the only country in the world..."

nearly.

"It's not normal."

nope, it's definitely weird and it sucks.

but at least there's the FEIE.

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[–] 9point6@lemmy.world 43 points 1 week ago (2 children)

I always find it mad as hell that Americans have to pay tax in the US even if they are living and earning elsewhere

Especially given generally Americans are pretty allergic to reasonable taxation

[–] Varyk@sh.itjust.works 13 points 1 week ago (1 children)

yeah it is totally banana stacks, and nobody tells anybody else how to get around that, of course.

since nobody knows the sacred knowledge anyway.

some tax guy, not my tax guy, just a random guy who worked in taxes, offhandedly mentioned it to me like it was no big deal one day and I was like whaaaat?

most of the expats I know just don't pay taxes because they're dumb, or they're paying taxes that they don't need to because nobody told them about the FEIE.

[–] pimeys@lemmy.nauk.io 8 points 1 week ago (3 children)

You still need to file every year. An advisor at least here in Germany can do both countries, but you pay a premium for that.

[–] Varyk@sh.itjust.works 4 points 1 week ago (10 children)

I addressed that in a comment but I did not include that in the body.

fixed.

The FEIE is super simple to fill out.

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[–] inkrifle@lemmy.world 4 points 1 week ago (1 children)

I read somewhere that Eritrea (the North Korea of Africa) is the only other country that has this policy.

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[–] Blaze@lemmy.cafe 13 points 1 week ago (9 children)

It might be interesting to crosspost this to !politicaldiscussion@lemmy.world

Also, I know you mean good, but this isn't relevant to probably a high number of Lemmy users who are not US citizens

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[–] weirdboy@lemm.ee 11 points 5 days ago (1 children)

The exemption only applies to earned income, meaning you cannot apply any of that $125k to stuff like investment returns, dividends, royalties, or rents collected.

[–] Varyk@sh.itjust.works 2 points 5 days ago (2 children)

That's right.

The Foreign Earned Income Exclusion specifically applies to earned income, and does not apply to unearned income.

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[–] Im_old@lemmy.world 10 points 1 week ago (2 children)

Unless you renounce US citizenship of course. I understand it's a bit extreme, but it is a solution

[–] iAmTheTot@sh.itjust.works 7 points 1 week ago (1 children)
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[–] Varyk@sh.itjust.works 7 points 1 week ago* (last edited 1 week ago)

do you mean "another option to avoid paying taxes is renouncing your citizenship?"

in which case, yeah, extreme and still an option.

but the FEIE is way simpler and you can keep the few perks US citizenship still affords its rabble.

[–] bizarroland@fedia.io 6 points 1 week ago (1 children)

I'm seriously tempted to sell all my stuff and just become a nomad.

Sounds pretty dreamy all in all.

[–] Varyk@sh.itjust.works 5 points 1 week ago (1 children)

it's pretty great.

and it's just about as easy as you have described.

If you have any questions, I am happy to answer.

I've been doing this a long time and I've helped other people start traveling.

[–] bizarroland@fedia.io 4 points 1 week ago (1 children)

I guess my only question is, if I sell everything and liquidate all of my assets I would probably have like 30 grand, maybe more maybe less.

How long is that going to last me while I'm wandering, and what options are there to keep money rolling in?

[–] Varyk@sh.itjust.works 9 points 1 week ago (1 children)
  1. tldr: "30 grand will last you at least 5 years of very comfortable living if you're at all trying to budget wisely.

  2. the easiest and most immediately profitable is English teacher, but remote work is vast and covers every field, so it really depends on what you're interested in.

1 full)

totally depends on your habits and proclivities, but I lived on less than $300 a month for about a year. a lot of hostels in Asia and Europe have monthly discounts and they're already like $7 a day. in Asia they can be $2 a day for a bunk bed in a room.

private rooms are 10 to 15 bucks a day, but if you're going to do that then just go to a hotel and pay for the month, which you can easily get for $200 to $300 a month all utilities included.

I've been doing this a while, so right now I'm living in India paying $300 a month for a private two-bedroom two bathroom full kitchen, living room and dining room house plus rooftop terrace parking garage, the whole package, all utilities included plus free unlimited Wi-Fi.

about $0.90 will get you at one entree of chili goby, 2 to 4 rotis and a side of dal or curry.

kabobs are about $0.20 here, potstickers are up to $0.10 each.

anyway, you can live extremely cheaply in the beginning and then figure out what you want and go from there.

If you have 30 grand and no experience traveling, you can rent private condos or houses in a couple dozen countries off tge top of my head for less than 500 USD a month, all utilities included.

in the cheaper countries, you can spend $20 a day eating out at the fancier restaurants or go to the mom and pop shops or cook yourself and spend $1-3 a day on simpler meals.

If you want to pamper yourself and live in more expensive countries, you can double all those prices, but the more you travel the better you'll get at traveling and finding good prices.

30 grand will last you at least 5 years if you're at all watching your money,.

annually, you only need a couple thousand to live indoors and eat as much as you want, several thousand to to live privately end comfortably and enjoy entertainment everyday, and a few thousand after that to splurge most of the year.

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important consideration is that you only need to make five grand a year for all of your expenses well traveling in the more affordable countries (of which there are dozens), anything after that is play money.

If you have zero skills or certifications, English teaching is the easiest and quickest way to make money. you're instantly making $12 to $20 an hour repeating primary colors and fundamental vocabulary to smart well-behaved children for 45 minutes at a time.

you can get a tefl certification for 40 bucks on Groupon, that lasts for a lifetime and increases your pay up to $20 even without experience.

or you can just fly over to China and you'll get a job that week starting at an absolute minimum of $12 if you fuck up the interview and dress like a homeless person.

Last I checked, Saudi Arabia (and some provinces in China) was paying $6,000 US a month for English teachers.

that's the easiest, but there are plenty of other jobs you can do.

there are too many jobs to list, you can write articles if you're good at writing, you can get free it certifications and work as an SEO optimizer, you can literally pick berries and work seasonally in some countries.

I knew a Spanish couple who are just trying to choose a country and they just moved to whichever place had berry picking work that year, worked a couple days a week.

If I know your interests, talents or proficiencies I can suggest more specific jobs in that field, but again, you only need to make five grand a year to live very comfortably, and you only need a couple grand to live in a dorm and eat good food everyday.

If you have those savings you're talking about, you have a minimum of 5 years to figure out a way to make $5,000 bucks a year to maintain your standard of living, although you'll probably save money the longer you travel.

[–] bizarroland@fedia.io 3 points 1 week ago (3 children)

I'm definitely a jack of all trades, but I have a bachelor's in IT and like 10 years of work experience.

I feel like the competition is pretty high for people in that category though, but I could probably handle a couple hours a week of berry picking and English teaching.

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[–] graycube@lemmy.world 3 points 1 week ago (1 children)

Does project 2025 get rid of the IRS? If so, how would this be enforced?

[–] Varyk@sh.itjust.works 8 points 1 week ago (2 children)

No, this is a legal and very straightforward IRS procedure corresponding to physical presence in the United States.

it's called the feie, Foreign earned income exclusion act.

you basically fill out one extra tax form called FEIE while you're doing your taxes, write down the dates you were outside of the country, and then since you aren't in the country and are not receiving any services from the US, you don't have to pay income tax up to a certain amount (it's a little over 125k this year).

that's it.

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