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by hopth 1414 days ago
Nice one IRS, try again next time :-/
1 comments

The IRS literally doesn’t care where Americans live or work. US citizens/permanent residents are required to file and pay taxes regardless of where they live, and regardless of where they earn their income. US Federal tax obligations don’t change for digital nomads. If an American taxpayer can stay out of the US for 330+ days in a year they may qualify for the FEIE (Foreign Earned Income Exclusion), which applies even to income from US sources. That’s a big tax break.

To avoid state income taxes establish residency in a state that doesn’t have an income tax — Texas, Florida, Nevada, Washington, etc. That can be as easy as getting a new driver’s license. I stayed at a small bed & breakfast in Washington for two weeks (key thing: residential address, not a hotel or mailbox) while I got a WA license, then changed the address online to my mailbox. If you’re unlucky enough to live in California or Virginia now be aware that those states particularly try to hang on and tax you as a resident even after you move out.

Unless you’re breaking the law or otherwise attracting attention no one checks if you actually reside at the address on your license. Presumably you aren’t living in the US anyway so you’re not going to get tickets where your address might matter.