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Showing posts with the label digital nomad taxes

How to File Taxes as a Remote Worker Living Abroad in 2025

Introduction Working remotely while living abroad is a dream for many digital nomads. But when tax season arrives, that dream can quickly turn into a headache. Do you pay taxes in your home country or your new country of residence? Which forms do you file? And which tools make it easier? In this guide, you’ll learn how to file taxes as a remote worker living abroad in 2025 , the pros and cons of working overseas , and the best apps to simplify your tax process . Do Remote Workers Have to Pay Taxes Abroad? The short answer: Yes. But the details depend on your home country and where you’re living. Citizenship-based taxation (like the U.S.) – Some countries (e.g., the United States) tax citizens even if they live overseas. You’ll still need to file annual returns. Residency-based taxation – Many countries tax based on where you live most of the year (often 183 days or more). Tax treaties – Some countries have tax agreements that prevent double taxation, allowi...

Ultimate Tax Guide for Digital Nomads & Freelancers

The Ultimate Tax Guide for Digital Nomads and Freelancers Introduction If you’re a digital nomad or freelancer earning income while traveling the globe, U.S. taxes can feel like a maze. The rules are complex, but with the right strategies—like the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) —you can legally reduce or even eliminate what you owe. This guide breaks down everything you need to know for 2025, from filing requirements to common pitfalls, so you can focus on your work, not your tax stress. Who Needs to File U.S. Taxes—and Why Citizenship-Based Taxation The United States taxes based on citizenship, not just where you live. That means even if you spend the entire year abroad, you may still need to file a federal tax return. Filing Thresholds for 2024 Tax Year (Filed in 2025) Single: $14,600 gross income or more Married filing jointly: $29,200 gross income or more Self-employed: $400 net earnings or more If you cross t...