Paying US Taxes as an Expat Abroad – What You Need To Know

Badass Digital Nomads

David and Carrie McKeegan are the founders of Greenback Tax Services, one of the top tax prep service companies for expats and Americans abroad. The couple and their three children have been living abroad for many years and started offering expat tax services after becoming frustrated with the confusion around paying US taxes abroad.

In part 2 of this interview, David and Carrie fill you in on everything you need to know about paying taxes abroad as a digital nomad, international traveler, or retiree. From required tax documents to important deductions and deadlines, this dynamic duo covers all the bases!

They even share two ways you can reduce or eliminate your US tax burden, the consequences of not filing taxes while living abroad, and their candid opinions on digital nomad visas and how to avoid state income taxes.

We know how much expats like to procrastinate on filing their tax returns (wink). If you need professional tax advice or just want to know where to get started, tune in to this episode to learn from the experts and don’t hesitate to reach out to them if you have any further questions!

WHAT YOU WILL LEARN IN EPISODE 118:

• Is it possible to pay zero taxes as a US citizen abroad?
• The tax write-offs, deadlines, and forms you need to know about as a US citizen living abroad.
• The three countries that tax their citizens regardless of where they live.
• FEIE: Foreign Earned Income Exclusion
• Why the US State Department revokes people's passports sometimes.
• FATCA and FBAR forms, and what happens if you don’t file your tax returns while living abroad.
• How to know if you have to pay taxes in the country you’re living in as an expat.
• How to open an offshore bank account.
• Requirements for opening a bank account in Costa Rica.
• Pros and cons of getting residency in Costa Rica.
• Digital nomad visas versus "passport runs" and "perpetual tourism."
• The biggest tax deductions and exclusions expats and retirees should know about.
• How to reduce or avoid paying US taxes and double taxation as an expat with Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit.
• Important tax dates and deadlines you should know about as an expat.
• Pros and cons to establishing your business is another country.
• Recommendations for bookkeeping and tax software for business owners and digital nomads.
• How to pay zero or low taxes in Puerto Rico.
• How to collect Social Security abroad.

QUESTIONS ANSWERED:

• Do US citizens have to file taxes if they live abroad?
• What are the best ways to lower your tax burden?
• Which tax credits and deadlines should every expat know about?
• What are the consequences of not filing your tax returns?
• Will the US ever implement a residency-based tax structure?
• Can you change your tax domicile as an expat to avoid paying state income taxes?
• What are the best countries for expats to live in for low taxes?
• What do traveling remote employees on payroll need to know?
• What about double taxation?
• What are the most important tax forms people should know about?
• Why should people know about the W8-BEN form?
• How to file tax extensions as an expat?
• Will the US ever change the tax rules for Americans abroad?
• Which types of people and businesses does Greenback help with taxes?
• Are there any special considerations that retirees should know about?
• Can you receive social security checks abroad?
• Will there be any changes to US taxes and healthcare in the future?
• And more!

RESOURCES

Money Transfer App:

• Wise

International Travel Insurance:

• SafetyWing

Videos:

• EXPAT EXPLAINS: Americans Abroad on Paying Taxes and Renouncing Citizenship (Greenback Tax Survey)
• 8 Reasons Why People LEAVE Costa Rica [Why I Left]
• How to Renounce Your US Citizenship
• Why I'm NOT Renouncing My US Citizenship

Articles:

• "12 Ways the World Will Change When Everyone Works Remotely"

Related Podcasts:

• Part 1 of this Interview: Living Abroad as an Expat Family
• How U.S. Expats Feel About Paying Taxes Abroad and Renouncing Citizenship
• The Shocking Truth About How US Expats Vote

Books and Moving Abroad with Kids:

• Carrie's "absolute favorite book" about homeschooling/ world schooling is The 5 Hour School Week.
• The Bradley Family of "worldschools" is "incredibly inspiring" - they live in the same town as David and Carrie in Nosara, Costa Rica. Follow them at: http://www.journeyoftheglobe.com/
• You'll also want to watch this TED Talk about schools and creativity: https://www.ted.com/talks/sir_ken_robinson_do_schools_kill_creativity
• Find more books on Kristin's Book Club List

Tax Prep Services:

• Greenback Tax
• H&R Block
• TurboTax
• Xero

Freelance Services:

• UpWork

Remote Productivity Apps & Tools:

• Podio
• Salesforce

Other Resources:

• IRS
• Foreign Earned Income Exclusion
• F.I.R.E. Movement
• Vanguard Roth IRA
• Tripadvisor Cities I’ve Visited
• Poker Refugees Relocation Services

Connect with Greenback Tax Services:

• Visit their website
• Prices and services
• Check out their blog
• Watch their webinars
• Find their document checklist
• Expat Tax Survey

Connect with Kristin:

• Follow on Instagram
• Subscribe to Traveling with Kristin on YouTube
• Subscribe to Digital Nomad TV on YouTube
• Follow on Medium
• Follow on Clubhouse @KristinWilson
• Join the Badass Digital Nomads Facebook Group

Do you have questions about living abroad? Email Kristin at [e-mail]

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Gracias to Henry Martinez for the coffees! ☕️

And a special thank you to my 2021 Patrons: Teklordz, Walt, Shawn, Richard Y, RZ, Craig S, Colin, Heather, Karen, Kiran, Scott, Michael, Issac, Mike M, Yasmine, Erick M, Yohji, Gary R ,Ron, Gary, Ray, Annie, Henry L, Kelly, Alejandra, Keith, Stephen, Henry M, Warren, James, Daniel, Javier, Gary, Emily, Rich, Aisha, Phil, Anthony, and Anna.

Special welcome to my newest Patrons: Kathleen, Jennifer, Anna, Anthony, Aisha, Rich, and Phil!

Become a Patron for $5/month at Patreon.com/travelingwithkristin

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