The new generation of Digital Nomads are enjoying visiting and living in exotic locations around the world in 2019 while working remotely, often in a freelance or entrepreneurial capacity.
American Digital Nomads however are still required to file US taxes on their worldwide income, wherever in the world they may reside. This is because the US taxes based on Citizenship rather than on Residence.
Luckily, there’s an IRS exemption that allows most Digital Nomads not to pay any US taxes, providing that they file a US tax return and actively claim it, and that they limit the amount of days (including part days) they spend in the US to less than 35 a year.
The exemption is called the Foreign Earned Income Exclusion. It can be claimed using form 2555, and it allows American Digital Nomads to simply exclude up to around $100,000 of earned income from US taxation while they are based abroad.
Digital Nomads who earn over this amount, and those who want to temporarily not pay self-employment taxes while they save for a few years, may also benefit from setting up a foreign-registered LLP in a no-tax country to get paid through.
To minimize your US taxes while staying compliant, get in touch; in this article however we share the best Digital Nomad blogs in 2019.
1 – Expert Vagabond
Matt Karsten has been travelling the world for the last 9 years, documenting his travels and adventures on his blog. For Digital Nomads, Matt’s article, tips, and photos provide great inspiration when deciding where to visit and live.
Matt focuses on inexpensive, inspirational adventures, living according to the mantra that we should value experience rather than possessions.
“I want to show you how to travel the world, to seek experiences over possessions, and open your mind to new possibilities. To visit places that you didn’t even know existed!” – Expert Vagabond
2 – Untemplater
Sydney Dunham graduated quickly then worked hard to get in a position where she could become financially independent as a step towards what she calls ‘shattering the template lifestyle’.
After an unsuccessful attempt to become a professional photographer back in the US, Sydney embraced the Digital Nomad life, and now works as a freelancer, writing, editing and managing websites while travelling to over 30 countries so far, documenting her adventures along the way.
3 – Nomadic Matt
Nomadic Matt is arguably the godfather of the Digital Nomad lifestyle. Way back in 2005, fed up of his cubicle worker job, Matt set off to travel the world on a shoestring. Thankfully, he documented his travels and hacks to live cheaply while experiencing a full range of adventures on a budget, creating a valuable resource for all Digital Nomads who want to keep a lid on their spending while still roaming the world.
Denise Mai is relatively new to the Digital Nomad Blogosphere, having only left her corporate job in 2016. Driven by her dream of a ‘location-independent lifestyle’, Denise jumped in and then learned to swim, taking on small writing jobs initially that soon developed into full time work as she travelled. Her blog is all about how to go Nomad, rather than her adventures and travels.
5 – Nomad Capitalist
Andrew Henderson’s blog is a bit different to most Nomad blogs, as it focuses on long term term financial security and tax minimization. As such it’s a great resource for advanced American Digital Nomads who have made the decision never to return to live in the US and want to explore the global possibilities of lifelong financial security. Great advice on how to obtain alternative citizenships and the best countries to live and invest in the long term.
Bright!Tax is the leading specialist regarding US taxes for Americans living abroad, and the Bright!Tax Digital Nomad blog contains a wealth of information for American Digital Nomads who want to minimize their US tax bill in 2019, whatever their short and long term priorities and goals. Detailed advice on staying compliant, paying less US tax, and short and long term planning and strategy.
Americans living overseas who haven’t been filing US taxes because they weren’t aware that they had to from abroad can catch up under an IRS amnesty program called the Streamlined Procedure. Get in touch for further details.