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by UncleEntity 2110 days ago
> I know Us citizens pay their home tax regardless where they live but this could be a huge issue for them in the long term.

If you stay gone long enough (330 days/year IIRC) then the income you make abroad is tax-free (up to $80k also IIRC).

I got hit with a $30k tax bill because of leaving Iraq early (too dangerous for even my crazy ex-paratrooper self) though I should've gone down to Mexico and hung out on the beach for a few months or something -- in 20/20 hindsight...

1 comments

If you want the term to google to read more about this, it's called the FEIE (foreign earned income exclusion). You're allowed to exclude up to a certain amount of your income each year from federal income taxes (for 2020, it's $107,600). Due to the pandemic they relaxed the rule this year so anyone who spent the first 2-3 months of 2020 outside the US can seriously consider using it.

https://www.irs.gov/individuals/international-taxpayers/fore...