you always have to file taxes if you are a US citizen, you rarely have to file taxes as a digital nomad in other countries, but you’d have to check depending on the country.
the taxes you pay in one country will offset the taxes you pay in the other, so you won’t be paying double taxes and you can choose the more favorable tax home for you.
and If you are outside of the US for more than 330 days out of the year, you don’t pay earned income tax on $125,000(they update the number annually),
your employer in the US doesn’t have to do anything with the country you’re moving to.
untorquer@lemmy.world 1 year ago
This is a complicated tax situation. Taxes tend to be based on place of employment. So if you’re working for a US company you’ll need to look into what tax treaties your country of residence has with the US, because your US employer will likely have to withhold taxes and provide a W2. Your host country will ask that you report your income. If the treaty allows, you can claim tax paid in the US as a credit. The reverse is often true in these treaties.
This will often have consequences with things like pensions, Holiday pay, etc… For example, if your country has a lot of mandated vacation you may either not have that benefit, or your company will have to conform to the country’s rules which could cause friction, especially with American companies.
lordnikon@lemmy.world 1 year ago
Yeah the company I work for is unlimited pto and it’s the UK so i can deduct my UK tax from my usa tax. The weird part of not having an uk income. But die to having dual citizenship i don’t need to show an income for immigration.
untorquer@lemmy.world 1 year ago
Cool! Just file your tax extension by april 15 if the automatic 2 month extension is even slightly inconvenient or pushing the UK’s tax return provision date… It’s no questions asked and gives you until October.
The FBAR is also super easy if not slightly tedious depending on your foreign banking situation’s complexity.