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Ethan Taylor

Do I need to pay U.S. taxes while traveling abroad with no home base after moving from America?

I'm currently working 100% remote as a freelance marketing contractor. I get a steady paycheck from my main client plus some side gigs that I bill separately with invoices. Right now I'm living in San Francisco, but my visa expires next month so I'll be heading back to Europe. My plan is to basically be a digital nomad, bouncing around different countries for the rest of 2024 before I finally pick a permanent spot to settle down in 2025 (and establish tax residency there). My big question is about taxes for the remainder of 2024. Since I won't have an actual "home base" and will just be traveling through various countries in Europe, do I still need to pay taxes on the income I'm earning from my remote work? I'm not sure how U.S. tax obligations work when you're basically just traveling around with no fixed address. Does anyone know how this works for U.S. tax purposes when you don't actually live anywhere specific?

The short answer is yes, you'll still need to pay U.S. taxes even while traveling abroad with no fixed address. As a U.S. citizen or resident alien, you're taxed on your worldwide income regardless of where you live. The key concept you need to understand is the "substantial presence test" - if you've been in the U.S. for 183 days or more during a 3-year period (using a weighted formula), you're still considered a U.S. tax resident. Since you mentioned your visa is expiring, I'm assuming you're not a U.S. citizen, but you've likely met this test for 2024. You'll need to file a U.S. tax return for the portion of 2024 that you were physically present in the U.S. and earning income. Once you establish tax residency in a new country in 2025, you might be able to claim benefits under a tax treaty, but for 2024, plan on filing a U.S. return.

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What if OP is already a citizen of another country? Would they still have to pay taxes to the US for income earned after leaving, or just for the portion earned while physically in the US? Also, would it matter if their clients are US-based vs international?

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If OP is not a U.S. citizen but was a resident alien (based on having a visa), they would generally only need to pay U.S. taxes on income earned while physically present in the U.S. or from U.S. sources after leaving. Once they terminate their U.S. residency, they would file a dual-status return for 2024. For the second question, it does matter where clients are based. Income from U.S. sources (like U.S.-based clients) may still be subject to U.S. taxation even after leaving, potentially subject to a 30% withholding tax unless a tax treaty applies. Non-U.S. source income earned after departing generally wouldn't be taxable for a non-citizen once they've formally terminated their U.S. tax residency.

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I went through a similar situation last year and found that using https://taxr.ai was super helpful for my complicated international tax situation. I was moving between countries while working remotely and was totally confused about my tax obligations. The tool analyzed my specific situation (including the substantial presence test that the previous commenter mentioned) and gave me a clear breakdown of which countries I owed taxes to and for what periods. It even helped me understand which tax treaties applied to my situation so I could avoid double taxation. What's great is that they specialize in these complex international tax scenarios that most regular accountants struggle with.

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How accurate was the advice compared to what an actual tax professional would tell you? I'm skeptical of AI tools for something as complex as international taxation.

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Did it actually help with figuring out state tax obligations too? I'm in a similar situation but worried about California trying to claim I'm still a resident even after I leave.

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The advice aligned perfectly with what my accountant later confirmed, but I got it much faster and was able to plan accordingly. What impressed me was how it cited specific IRS publications and tax code sections that applied to my situation, which gave me confidence in the accuracy. Regarding state taxes, absolutely! It helped me understand the specific requirements for terminating my state residency in New York, which is another state that's aggressive about maintaining tax residency. It outlined the exact steps I needed to take to establish non-residency, including what documentation to keep. California is notoriously strict about this, so having clear guidance on severing California residency was invaluable.

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Just wanted to follow up about my experience with taxr.ai since I was skeptical at first. I used it before my move from California to Portugal and it was seriously a lifesaver. The tool gave me a detailed checklist of exactly what I needed to do to formally terminate my California tax residency (which is way more complicated than I thought). It also helped me understand the foreign earned income exclusion and how to qualify for it while traveling between countries. I was able to plan my travel schedule to maximize tax benefits. The best part was that I avoided thousands in potential California state taxes because I properly documented everything based on their guidance. Definitely recommend checking it out if you're in this nomad situation!

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If you're trying to reach the IRS for specific guidance on your international situation, good luck with that! I spent WEEKS trying to get through to someone who could answer questions about my foreign income situation. Then I found https://claimyr.com which got me connected to an actual IRS agent in under 45 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I needed specific answers about the Foreign Earned Income Exclusion requirements while traveling between countries (sounds similar to your situation). The IRS agent was able to clarify exactly how the physical presence test works for digital nomads and what documentation I needed to keep while traveling. Saved me so much stress!

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Mei Lin

Wait, how does this service actually work? Do they just call the IRS for you or something? I don't understand how they can get through when nobody else can.

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Yeah right. Nothing can get you through to the IRS faster. I've literally waited 3+ hours multiple times. This sounds like some scam that's going to charge me and then just put me in the same queue everyone else is in.

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They use a system that continuously dials the IRS using optimal call patterns and holds your place in line. When they finally get through, they connect the call directly to your phone. It's basically like having someone wait on hold for you, but with technology that increases the chances of getting through. The service doesn't answer questions for you or pretend to be you - they simply navigate the initial IRS phone tree and wait on hold until an actual agent picks up, then immediately transfer the call to you. I was skeptical too, but after waiting on hold for 4+ hours myself the previous week, I was willing to try anything. Was honestly shocked when my phone rang and there was an actual IRS agent on the line.

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I need to eat my words about Claimyr. After my skeptical comment, I decided to try it anyway because I was desperate to talk to someone at the IRS about my foreign tax credit questions. I honestly expected it to be a waste of money, but my phone rang about 35 minutes after signing up, and there was an actual IRS agent on the line! The agent walked me through exactly how to handle my situation as a digital nomad working for US clients while traveling abroad. Got clear guidance on what documentation I need to keep while traveling between countries to prove I'm not maintaining a US tax home. This would have taken me days to figure out on my own (if I could even get through to the IRS at all). Definitely worth it for peace of mind on such a complex tax situation.

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One thing nobody has mentioned yet is that you might qualify for the Foreign Earned Income Exclusion (FEIE) which could exclude up to $126,500 of your foreign earned income for 2024. But you have to meet either the bona fide residence test or the physical presence test. Since you won't have a fixed residence, you'll probably need to use the physical presence test, which requires you to be physically present in foreign countries for at least 330 full days during a 12-month period. Keep in mind this is FULL days, so days traveling to/from the US don't count. Also keep super detailed records of where you are each day! The IRS can and will ask for proof if you're audited.

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Do the 330 days have to be consecutive? Or could I do like 200 days abroad, come back to the US for a month, then go abroad again for another 130+ days?

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The 330 days don't need to be consecutive, but they do need to fall within a 12-month period. However, your scenario wouldn't work because any time you spend in the US breaks up your qualifying period. The 12-month period can start on any day, not just January 1st. So if you're abroad from July 2024 to July 2025 for 330+ full days, you could qualify for a partial FEIE for 2024 (covering the portion of income earned during the qualifying period in 2024) and a partial exclusion for 2025. You'd need to file Form 2555 with your tax return to claim this. This is definitely an area where good record-keeping is crucial!

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Just want to add that state taxes can be trickier than federal in this situation! California is super aggressive about claiming people as residents even after they leave. When I left CA, I had to do all of the following to convince them I wasn't a resident anymore: 1) Close CA bank accounts 2) Get a driver's license in my new country 3) Sell my CA property 4) Register to vote in my new location 5) Move my belongings out of storage in CA Even after all that, they still sent me letters for 2 years! Make sure you formally terminate your state residency before leaving.

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Is it different for each state? I'm in Texas right now and planning to do the digital nomad thing next year.

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Texas is actually much easier since it has no state income tax! You won't have the same residency termination headaches that California residents face. States like California, New York, and Virginia are notoriously aggressive about maintaining tax claims on former residents, but Texas doesn't have that issue since there's no income tax to begin with. You'll still need to handle federal tax obligations, but the state side will be much simpler for you.

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Great question! I went through something similar when I moved from the US to start my nomad journey in 2023. A few key things to consider: **Federal Tax Obligations:** - You'll likely still need to file a US tax return for 2024 since you were physically present in the US for part of the year - Keep detailed records of your exact departure date and where you earn income after leaving - If you're not a US citizen, you may be able to terminate your tax residency status once you leave, but this depends on your specific visa situation **State Tax Considerations:** - Since you're in California, definitely take the state tax termination steps seriously (as Giovanni mentioned above) - File a final CA tax return marking yourself as a part-year resident - California will want to see clear evidence that you've severed all ties **Digital Nomad Income:** - The source of your income matters - if your clients are US-based, there may be withholding requirements even after you leave - Consider whether you qualify for the Foreign Earned Income Exclusion once you meet the physical presence test **Pro tip:** Start documenting everything now - flight bookings, accommodation receipts, work location logs. The IRS loves paper trails for international tax situations! Would definitely recommend getting professional advice given the complexity of your situation with both federal and CA state tax implications.

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