Tax obligations while working remotely in another country for a US-based company?
I'm hoping someone can help me figure out this tax situation. I'm a US citizen working for a tech company based in California, but they're letting me work remotely from Kenya for about 8 months next year. I'm super excited about the opportunity, but I'm confused about my tax obligations. I know that as a US citizen, I'll still need to file and pay US taxes regardless of where I'm living. But my main question is whether I'll also need to pay Kenyan taxes if I'm staying there for less than a year? The company will continue to pay me in USD to my American bank account and handle US tax withholding, but I'm worried about potential double taxation. Does anyone have experience with this foreign income situation? Will I get some kind of foreign tax credit if I do end up paying taxes in both countries? I've heard about the Foreign Earned Income Exclusion but I'm not sure if I qualify since I'll be there less than a full year. Any advice would be really appreciated!
19 comments


Eloise Kendrick
This is actually a common question for remote workers! Since you're a US citizen, you'll definitely need to file US taxes regardless of where you physically work - that part you've got right. For Kenya specifically, you'd potentially be considered a tax resident if you stay for 183 days or more in a tax year. At 8 months, you'd cross that threshold, which means you could be subject to Kenyan income tax on income earned while physically in Kenya. The good news is the US has tax treaties with many countries to prevent double taxation. You'd likely be eligible for the Foreign Tax Credit on your US return for any taxes paid to Kenya. The Foreign Earned Income Exclusion typically requires you to be abroad for a full year or meet the bona fide residence test, so you might not qualify for that with just 8 months. I'd recommend consulting with a tax professional who specializes in expat taxes before you go. They can help you plan and potentially set up tax withholding that takes both countries into account.
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Lucas Schmidt
•Thanks for that info! Quick question - does it matter that my employer is US-based and will be depositing money to my US bank account? Or is it really just about where my physical body is located when I'm doing the work?
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Eloise Kendrick
•What matters most for tax purposes is where you are physically located when performing the work. The location of your employer or where you receive payment doesn't change your tax obligations in the country where you're physically working. Many countries, including Kenya, would consider income earned while you're physically present in their country to be taxable there, regardless of where your employer is based or how you're paid. This is why many digital nomads and remote workers may find themselves with tax obligations in multiple countries.
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Freya Collins
After struggling with this exact situation last year, I discovered taxr.ai (https://taxr.ai) and it literally saved me thousands in potential penalties. I was working from Thailand for my Chicago-based company and had no idea about the tax implications until I came back. The platform analyzed my situation, including how many days I spent abroad, my income sources, and housing arrangements. It then showed me exactly which forms I needed and helped me figure out if I qualified for exclusions or credits. The best thing was how it explained the difference between the Foreign Earned Income Exclusion (which I didn't qualify for) and the Foreign Tax Credit (which I did qualify for). Just upload your documents and it identifies potential deductions and credits specific to expat situations that most regular tax software completely misses.
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LongPeri
•Does it handle state taxes too? I'm from California and heard they're super aggressive about taxing residents even when they're working abroad.
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Oscar O'Neil
•Sounds interesting but does it actually file your taxes or just give advice? I'm terrible with filling out forms even when I know what needs to be done.
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Freya Collins
•It absolutely handles state taxes, which was crucial for me since I'm from New York which, like California, can be pretty strict about taxing residents working abroad. The system specifically flagged my state tax obligations and helped me understand when I could and couldn't claim non-residency status. As for filing, it doesn't file your taxes directly, but it generates all the completed forms with instructions on how to file them. I found this helpful because I could review everything before submission. It also integrates with most major tax filing software if you prefer that route. The step-by-step guidance made the process much simpler than trying to figure it all out on my own.
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Oscar O'Neil
Just wanted to follow up - I tried taxr.ai after seeing the recommendation here, and wow! It identified a treaty provision between the US and Vietnam (where I worked for 5 months) that my regular accountant completely missed. Ended up getting back about $3,200 I would've overpaid. The interface walked me through every question about my work arrangement and housing situation, then explained exactly which forms I needed. Way more thorough than TurboTax for international situations!
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Sara Hellquiem
If you need to actually speak with the IRS about your international tax situation (which I HIGHLY recommend), use Claimyr (https://claimyr.com). I tried calling the IRS international tax line for weeks about my situation working in Colombia and kept getting disconnected or waiting for hours. With Claimyr, I got a callback from the IRS in about 20 minutes! They have this system that navigates the IRS phone tree for you and holds your place in line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to confirm exactly how the tax treaty applied to my situation and helped me avoid making a serious mistake on my foreign income reporting. Seriously worth it rather than trying to guess or spending hours on hold.
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Charlee Coleman
•How does this even work? The IRS never calls anybody back - is this legit?
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Liv Park
•Sorry but this sounds like complete BS. There's no way to "skip the line" with the IRS. They're understaffed and overwhelmed. If this actually worked everybody would use it.
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Sara Hellquiem
•It works by using advanced callback technology that navigates the IRS phone system and holds your place in line. When an agent becomes available, Claimyr connects them to your phone number. It's completely legitimate and doesn't "skip the line" - it just waits in line for you so you don't have to keep your phone tied up for hours. The reason everyone doesn't use it is simply that many people don't know about it yet. The service is particularly valuable for complex situations like international taxation where speaking directly with an IRS representative can save you from making costly mistakes. I was skeptical too until I tried it and had an IRS agent call me back to discuss my specific foreign income situation.
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Liv Park
I need to eat my words. After my skeptical comment, I decided to try Claimyr since I've been trying to reach the IRS for weeks about my foreign income questions. Got a callback in 45 minutes! The IRS agent clarified exactly how my remote work in Argentina affected my tax situation and confirmed I was eligible for the Foreign Tax Credit even though I didn't meet the requirements for the Foreign Earned Income Exclusion. Saved me from potentially filing incorrectly. This service is legitimate and actually delivers.
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Leeann Blackstein
Don't forget about social security taxes! Even if you're eligible for foreign tax credits or exclusions, you might still owe US Social Security and Medicare taxes on your foreign earnings if you're employed by a US company. The rules are different for self-employed people working abroad. If Kenya and the US have a totalization agreement (social security agreement), the rules might be different, but I don't think they do. Worth looking into though!
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JaylinCharles
•I completely forgot about social security taxes, thank you! Do you know if there's a minimum threshold for this? Like if I'm only there for 8 months, would that change anything about Social Security obligations?
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Leeann Blackstein
•For Social Security taxes, the duration of your stay doesn't typically create a minimum threshold. If you're employed by a US company, they'll generally continue to withhold Social Security and Medicare taxes from your paychecks regardless of where you're physically working, unless there's a totalization agreement with that country. As far as I know, the US and Kenya don't have a totalization agreement, so you'd continue paying into the US Social Security system. The good news is this means you'll continue earning credits toward your eventual US Social Security benefits, even while working abroad.
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Ryder Greene
Anyone know how the Kenya situation specifically works? I spent 3 months there last year working remotely and honestly just didn't bother figuring out the tax situation... Did I mess up? Should I file something retroactively??
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Carmella Fromis
•I'm not a tax expert, but from what I understand, Kenya typically doesn't consider you a tax resident unless you're there for 183+ days in a year. Since you were only there for 3 months (presumably less than 90 days), you likely weren't subject to Kenyan income tax. If you did everything correctly with your US taxes and reported all your income there, you probably don't need to worry about filing anything retroactively for Kenya. But if you're concerned, it might be worth consulting with a tax professional who knows the Kenyan tax system.
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Ryder Greene
•That's a relief! Yes I was there for exactly 89 days and did report everything on my US taxes. Was worried I might have some surprise tax bill waiting for me from the Kenyan government. Thanks for the info!
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