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Question for US IMers living abroad...

by bigjasonellis
3 replies
I've always wondered this, so I will ask the pros on Warrior Forum:

If your business takes off enough that you can travel instead of staying put, and you have no US based residence, how do you have to do taxes? You technically don't live anywhere in the US, so do you have to pay state taxes? From what I understand, federal taxes apply to US citizens no matter where you live after a certain amount. Is that true? How does that work?

Thanks.
#abroad #imers #living #question
  • Profile picture of the author briankno
    I'd like to know about this as well. Anybody?
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  • Profile picture of the author Joe Thio
    After a quick search, I found this blog post that seems to answer your question, talking about expatriate taxes: What Every American Expat Should Know About
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  • Profile picture of the author NoobSensei
    Originally Posted by bigjasonellis View Post

    I've always wondered this, so I will ask the pros on Warrior Forum:

    If your business takes off enough that you can travel instead of staying put, and you have no US based residence, how do you have to do taxes? You technically don't live anywhere in the US, so do you have to pay state taxes? From what I understand, federal taxes apply to US citizens no matter where you live after a certain amount. Is that true? How does that work?

    Thanks.
    For state taxes, it depends on the last state that you lived in. Generally, if you live abroad then you aren't a resident of any state, and therefore don't owe state taxes. However, some states like to hang onto you long after you've moved abroad. (Virginia, in particular, is very reluctant to accept that you are no longer a resident.)

    For federal taxes, you owe taxes on your worldwide income...but for foreign-earned income, you are able to exclude the first $95,100 you earn, which effectively means you won't be paying any federal income tax if you earn less than that.

    You are still on the hook for self-employment taxes and SS/Medicare taxes, regardless of where in the world you earn your income.
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