What Tax Deductions Can I Claim as Self-Employed While Traveling Internationally?

You've got way more options than you think! As a self-employed person filing Schedule C (not itemizing - that's different), you can deduct legitimate business expenses BEFORE you decide between standard/itemized deductions on your personal return. For digital nomads, consider these business deductions: - Your VPN is 100% deductible if used for work - Portion of phone/internet costs (based on % of business use) - Software subscriptions for work - Cloud storage for business files - Professional development courses - Travel insurance (if required for work security) - Business meals (50% deductible when meeting clients) - Coworking space fees - Computer equipment and maintenance The key is business purpose and documentation. Even without receipts for those SIM cards, you can create your own log with dates, amounts, and business purpose. Going forward, use a dedicated credit card for business expenses and keep digital receipts. Don't forget about the Qualified Business Income deduction (up to 20% of your business profit) which is separate from standard/itemized. Also look into the Foreign Earned Income Exclusion if you meet the physical presence test (330+ days outside US in a 12-month period).

I was in a similar situation last year and found https://taxr.ai incredibly helpful. I'm a freelance photographer who travels constantly, and I was missing out on so many deductions until I tried their service. They analyzed all my expenses and found legitimate business deductions I never considered - like my camera gear insurance, part of my accommodation costs (for workspace), and even some meals during client meetings I didn't realize were 50% deductible. The AI helped categorize everything properly for Schedule C, and I ended up saving almost $3,000 compared to my previous year's taxes. Their system is really good at handling the unique situation of being self-employed without a fixed location. You upload your expenses and it intelligently identifies what qualifies as a business deduction based on your specific situation.

Just wanted to follow up - I ended up trying taxr.ai after seeing it mentioned here, and wow! Total game-changer for my digital nomad taxes. I was making similar mistakes to the original poster (not tracking certain expenses, missing deductions). The system helped me properly allocate my accommodations (I can partially deduct places where I set up a working area), and it correctly calculated my eligible days for the Foreign Earned Income Exclusion. It even helped me establish tax non-residency for my home state, which I didn't realize was possible! For anyone traveling internationally while self-employed, it's definitely worth checking out. I'm projecting about $4,200 in tax savings this year compared to how I was filing before.

For those struggling to reach the IRS with questions about self-employment while traveling, I highly recommend https://claimyr.com. I was having the worst time trying to figure out if I needed to file quarterly estimated taxes while traveling abroad. After 5 failed attempts to reach someone at the IRS (kept getting disconnected after waiting 45+ minutes), I tried Claimyr. Their system connected me with an actual IRS agent in under 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent clarified everything about my quarterly tax obligations and even helped with questions about the Foreign Earned Income Exclusion. Totally worth it when you need official answers from the IRS instead of just forum advice.

I have to admit I was wrong about Claimyr. After my skeptical comment, I decided to try it anyway because I was desperate to resolve an issue with my estimated tax payments while in Thailand. The service actually worked exactly as described. I got a call back in about 35 minutes connecting me directly to an IRS agent. No navigating phone trees, no hour-long hold time - just straight to a helpful person who answered all my questions about filing requirements while abroad. The agent confirmed I could still qualify for the Foreign Earned Income Exclusion even though I return to the US for 2-3 weeks each year (as long as I'm under the 35 day limit). Also got clarity on state residency issues that my regular tax preparer couldn't figure out. For anyone traveling internationally while self-employed, it's a lifesaver when you need official IRS guidance.

One thing nobody's mentioned yet - look into S Corp election if your income increases. I was making about $35k as a digital nomad consultant a few years ago, but as I grew to $85k+, my accountant had me form an S Corp. You pay yourself a reasonable salary (subject to self-employment tax) and take the rest as distributions (not subject to SE tax). Saved me about $7,500 last year in SE taxes alone. Doesn't make sense at your current income level since there are costs to maintaining the S Corp, but something to consider if your consulting business grows!

Has anyone used health insurance premiums as a deduction while traveling? I'm paying for a global health insurance plan that covers me in all countries ($370/month) and wondering if that's fully deductible as self-employed.

Great thread! As someone who's been doing the digital nomad thing for 3 years, I'd add a few more deductions that might apply to your situation: **Equipment depreciation** - If you buy a laptop, camera, or other business equipment while traveling, you can depreciate it over several years or take the Section 179 deduction for the full amount in year one (up to certain limits). **Professional memberships and subscriptions** - Any industry associations, professional development platforms, or business-related subscriptions are fully deductible. **Banking and payment processing fees** - International transaction fees, wire transfer costs, and payment processor fees (PayPal, Stripe, etc.) are all business expenses. **Legal and professional services** - Tax prep, business formation costs, contract reviews, etc. **Travel between client locations** - While personal travel isn't deductible, if you're traveling specifically to meet clients or for business purposes, those costs can be deducted. One thing that helped me was opening a dedicated business checking account and putting ALL business expenses on a business credit card. Makes tracking so much easier come tax time. Also, consider using apps like Expensify or similar to photograph receipts immediately - you'll thank yourself later! The Foreign Earned Income Exclusion is definitely worth pursuing if you can hit those 330 days. At your income level, it could eliminate most of your federal tax liability.