why: so the government won’t be able to use your money for whatever the fuck they’re planning for the next 4 years.

as a traveler, none of my money has been funding Israel, for example.

one-step method: you basically fill out one extra tax form called FEIE while you’re doing your taxes, write down the dates you were outside of the country, and then since you aren’t in the country and are not receiving any services from the US, you don’t have to pay income tax up to a certain amount (it’s a little over 125k this year).

  • voracitude@lemmy.world
    148·
    23 days ago

    But if you earn over the threshold, you’re expected to pay taxes to the US government, no matter where you’re actually living or working, no matter if you’re also paying taxes wherever you currently are. The US is the only country in the world to assert that it has the right to tax its citizens remotely in this manner. It’s not normal.

    • thefactremains@lemmy.world
      68·
      23 days ago

      The US has double taxation treaties with over 60 countries. When you pay taxes somewhere else, you deduct all of that tax from your US taxes above the $125k.

      Though I definitely agree the IRS shouldn’t need these treaties, because if you’re not living there, why should you even need to file?

      • sunzu2@thebrainbin.org
        31·
        23 days ago

        Because US law says so lol

        Y’all just now learning that laws are written for the benefit of the ruling regime, not the peasants.

        • Aatube@kbin.melroy.org
          19·
          22 days ago

          There were only “two parties in all States,” Randolph concluded. “The ins and the outs.” The ins construed governmental power broadly for the gain of their own “patronage and wealth,” while the outs tried to limit such power. “But let the outs get in . . . and you will find their Constitutional scruples and arguments vanish like dew before the morning sun.”

    • teft@lemmy.world
      26·
      23 days ago

      They also charge you a crazy exit tax if you want to give up citizenship in order to save on taxes. They always get their pound of flesh.

    • Varyk@sh.itjust.worksOP
      11·
      22 days ago

      “over the threshold, you’re expected to pay taxes”

      sort of, that’s the “up to 125k” limit part of the FEIE(readjusted for inflation every year).

      you still don’t pay taxes on the first 125k.

      earning more than 125k is not a problem most people have.

      The problem most people have is not knowing that the feie exists in the first place and there are legal, straightforward ways to avoid paying income tax while saving money traveling.

      “no matter if you’re also paying taxes wherever you currently are…”

      this is very iffy and depends on a lot of factors.

      again, for most regular people, foreign income tax credits will erase most financial duties to the US.

      “The US is the only country in the world…”

      nearly.

      “It’s not normal.”

      nope, it’s definitely weird and it sucks.

      but at least there’s the FEIE.

    • state_electrician@discuss.tchncs.deEnglish
      6·
      22 days ago

      Double taxation treaties are very common. What I’ve been told by US coworkers makes the US stand out is that you still need to file your taxes with the IRS, even when living abroad. No idea if that’s actually the case.

      I have lived outside my native country for a while and only had to file taxes in my country of residence (neither of which is the US), because there’s a DTAA in place between the two.

    • Arbiter@lemmy.world
      6·
      22 days ago

      That said, if you’re making over 100k trumps tax cuts will probably be pretty nice for you.

      • phoneymouse@lemmy.world
        6·
        22 days ago

        Not if you live in a state with state and local income tax. They capped SALT deductions, so you’re basically paying tax on taxed income.

          • phoneymouse@lemmy.world
            4·
            22 days ago

            Some states still require you to file even if you don’t live there, but have ties, and may tax your income.

            • tiredofsametab@fedia.io
              1·
              22 days ago

              Further, not doing so could impact things like voter registration depending upon the state. The whole system of US voting is a mess since it’s all at the state level.

            • bitchkat@lemmy.worldEnglish
              1·
              21 days ago

              can you define ties? Because I don’t see how if I move from state A to state B that they will take income I earn while living in state B.

              • phoneymouse@lemmy.world
                1·
                21 days ago

                You own property in the state, or consider it your primary residence, you have income from business or investments in the state.

                It really varies state by state.

    • acockworkorange@mander.xyz
      4·
      22 days ago

      It’s not the only country. I’ve lived in another country that was just like that. I bet other countries have the same rule to avoid some tax loophole. Or just because they can.