How to Pay No Taxes as a Digital Nomad (Legally!!!)

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How to Pay No Taxes as a Digital Nomad (Legally!!!)

Рет қаралды 4,495

Күн бұрын

www.digitalcar... - In this video I explain one of major tax benefits available to digital nomads who remain outside of the United States for more than 330 days of the year.
Note: I am specifically referring to a credit offered by the IRS for US Citizens, who are taxes on their worldwide income. You can learn more about that credit, the Foregin Earned Income Exclusion, here on the IRS website:
www.irs.gov/in...
Other similar exclusions may exist for citizens of other countries, but you will have to research them on your own.
If you do actually qualify, this is an incredible amount of savings on your taxes and incredible opportunity to put more money in your pocket by being a digital nomad.
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My other full video about how to be a digital nomad:
• How to Become a Digita...
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*DISCLAIMER* I am not a financial advisor or tax professional.The content in these videos shall not be construed as tax, legal, insurance, or financial advice. Please consult your own tax and legal professional with questions about your finances and taxes.
#digitalnomad #taxes #smartmoney #digitalmarketingcareer #taxdeductions

Пікірлер: 23

@sethjared Жыл бұрын

I just found out that you actually can take the FEIC deduction on business income so long as you are not an S Corp, which most of you are not. That's great news it means even if you are a freelancer etc. you can take advantage. I'll make an updated video in the future, but generally speaking make sure to tax to your tax professional before doing this.

@AniluBlog 2 жыл бұрын

Thanks for the info.

@OfficialkeyyYT 2 жыл бұрын

Hey Seth! I'm waiting to take your course. I already did your webinar and I have a few questions. As far as length do you think its possible to finish in a week with dedication? I saw some people finish in weeks and your webinar says its about 30 hours. Also is it a live class or are we paying for slides and power points? I work night shift and I wanted to know if I need to attend during the day when you teach

@sethjared 2 жыл бұрын

Hey Keith - it is not a live class, the course consists of videos, assignments, and coaching calls. Funny enough I just interviewed a student who had a major career change after working the night shift for 11 years. 1 week would require basically working on the course 10 hours a day and doing a lot of hustling. When I first started the course was shorter and so that is how you may have seen people doing it in a week - I think one of my recent interviews Rainer mentioned that, and he started back in 2018. Since then I've added a lot more info and updated it continuously. I'd shoot for doing it in 1 month if you are very focused - the key is not to rush or skip steps. You're better off taking a little longer doing it right vs. rushing. But then again if you do it full time you can do it faster.

@OfficialkeyyYT 2 жыл бұрын

@@sethjared thank you!!! 🙏🏼

@chriso5842 11 ай бұрын

Regarding the FEIE, if you form an LLC not taxed as an S-Corp you will pay 15.3% for self employment tax on all income. If you form an s-Corp, you are only taxed 15.3% on your salary paid to you by the LLC as wages. So, what about the non-salary S-Corp earnings? I don’t believe you pay any tax on that portion, thus reducing your total tax burden. A rule of thumb is to pay yourself a wage that fair or this will stick out as tax avoidance (this may be 60% if earnings). If you are a regular W-2 employee working for someone else, you still qualify for the FEIE. This reduces your federal tax burden but you still pay your half of employment taxes (7.65%). Your employer would still withhold federal taxes from your paycheck unless you asked them to file a specific tax form, which would of course require transparently with your employer that you’re not actually living in the US as a remote worker. If you leave the US from a state with no income taxes you remain free from state taxes. Otherwise, you may still be required to pay state taxes. I’m not sure what conditions must be met. In addition, you must be aware of local tax laws to be sure you’re not considered a tax resident. This wouldn’t be a concern for short stays likely less than 6-months or for specific visa types. If the above is not correct, please comment!

@sethjared 11 ай бұрын

As I say in the video I am not a tax professional, and please cosult a tax professional to get all of the details. But generally speaking what you're saying sounds right if you have your own business - I am utilizing the S Corp thing myself at the moment to reduce taxes and it's quite complex figuring how much salary to pay yourself etc. I enjoy giving general advice but if you have a real tax concern please contact an accountant.

@chriso5842 11 ай бұрын

Thank you, Seth. Yes, since situations can be unique it’s very different to figure it all out. International tax experts are very expensive but perhaps worth it to guide you through a tax optimization strategy.

@SenorJuan2023 3 ай бұрын

My understanding is you have to be ON LAND during that time as well. Cruising makes you inelgible.

@sethjared 3 ай бұрын

I haven't heard of that, but then again I've never worked or lived on a cruise. It does say you must have a presence in a foreign country and if a cruise is not in a foreign county that could make sense. Either way I'd consult with a licensed CPA to understand it fully.

@therealmarquez9334 Жыл бұрын

Amazing info.. waiting to clear my plate before I enroll, to claim this tax deduction is it necessary I stay in one place? Or so long as I stay outside of the USA for a year I can move around??

@sethjared Жыл бұрын

Employment depends on what country you're a citizen of. If you're American and you get a remote job you can be wherever, so long as you can do the work.

@michaelsmith5463 5 ай бұрын

QUESTION: How is the new Thailand 180 day tax-residency going to effect you? I've read it ×I'll be enforced through the banking system and bank transfers.

@sethjared 2 ай бұрын

Hi Michael - sorry for the long delay. Looks like this issue is still unfolding. I'm not too worried as #1 The US has a double taxation treaty with Thailand and #2 I don't really bring much money into the country, just a little bit each month for small incidentals, but mostly use no foreign transaction fee US cards.

@jullyan2839 2 жыл бұрын

Seth, i love your content, but i have a question. Could you give some perspective or tips for people with non-US citizenship that want to work in Digital Marketing? I'm from Europe (Romania, Eastern Europe, part of the EU and NATO to be exact). Could i work for US based companies even if i dont have a US citizenship? And if the answer is yes, would i be paid like in the US? Sorry if it's not the most comprehensive comment, but it really bugs me and i want to know. Btw, right now i am 17 and working some jobs to get enough money to buy your course when i turn 18. Really appreciate you man, thank you!

@sethjared 2 жыл бұрын

Hi Jullyan - good to hear from you. Labor laws prevent companies in most countries from hiring non citizens or people without work permits. Some US companies will hire freelancers but the majority will be hiring citizens, just as your own country will prefer to hire its own citizens. Also one thing I explain to people in other countries is to consider the cost of living. Many people dream of making $60K in a US job, but the reason the jobs pay so well is that it's expensive as heck to live in the US or Western Europe. Companies do outsource low skill jobs like customer support, but not so much with digital marketing. However using a platform like fiverr or upwork you can definitely freelace for a US company. Also, I am not familiar with the EU laws but from my understanding employment between EU companies is more lax, so you may be able to get a job in Germany, France, etc. There are also jobs in Romania, though not as many. I had one student in Slovakia get a job at a ski resort there, and several students from Serbia have also gotten jobs, I believe with UK based companies. So there are options.

@jullyan2839 2 жыл бұрын

@@sethjared thank you for the response. I'll see what i can find on the internet about a career in digital marketing in Europe until i can take your course. Have a nice day! (P.S. if i'll have more questions i'll ask them in future videos.)

@SenorJuan2023 3 ай бұрын

It's infuriating that the American govt. doesn't just make taxes simple, instead of having everybody jumping through a bunch of silly hoops. It's very demeaning.

@sethjared 3 ай бұрын

All taxes are somewhat demeaning, but it is what it is. The best thing you can do, as the wealthy do, is learn how to play the game. Most Americans who only work a day job have a pretty simply time with it as their employers take out their taxes for them. When you become a freelancer or entrepreneur or nomad is when things get more complex.

@SenorJuan2023 3 ай бұрын

@@sethjared The Europeans don't even have to file. The govt. Figures it out.

@SenorJuan2023 3 ай бұрын

@@sethjared It's not so much the taxes as it is the hoops we have to jump thruough

@sethjared 2 ай бұрын

Yeah that is an irritating part of US taxes. On the other hand it does allow you for more creativity if you have a good accountant who knows how to play the game properly.

@sethjared 2 ай бұрын

Yeah it's a pain - I used to do all my own bookkeeping and taxes, once I outsourced that, I basically have about a week of work to do in February to file in April and it's all good then I forget about it for the rest of the year.