Easy Tips to Change Your State Residency as a Digital Nomad
As we all know, all US citizens are required to file a federal tax return every year as long as income exceeds the minimum filing requirements. However, some digital nomads might also need to file a state tax return if they keep a state residency. Fortunately, it’s easy enough to change your state residency as…
3 Vital Tips to Help You Survive an IRS Audit
The vast majority of taxpayers including digital nomads get through filing a tax return without any major problems. Just in case, here are 3 tips to help you survive an IRS audit. Many think the IRS has bigger fish to fry. You would be right most of the time; the odds of the average person…
Easy Ways to Organize Your Tax Documents
Tax season might be old hat by now, but there are some things about taxes that continue to perplex taxpayers, especially as digital nomads. Specifically, how to organize your tax documents? Your aunt says to throw it all away after 2 years. Your banker friend says to save everything for 7 years. Your mom says…
How to Report Hobby Income on Taxes
Hey, digital nomad. Is that a business or a hobby? Or is that hobby now actually a business? If your hobby or side hustle is bringing in the dough, good for you! But how do you report hobby income on taxes? First, I commend you for making money at your side hustle. That’s amazing! It…
7 Simple Items to Help You Avoid an IRS Audit
There is no foolproof way to avoid being audited even as a digital nomad. The IRS makes most of its selections either based on the fact that the filer is part of a targeted group or because a computer program picked out the tax return for some reason. You might do everything right and still…
Income Tax Requirements as a Digital Nomad
Traveling and living outside the USA can be quite exciting. I definitely understand the appeal. However, it doesn’t matter where you go, because the US government still expects you to file a tax return and pay taxes as a US citizen. This is true even if you become a resident of another country and live…
Take Action Now: File Your Taxes Early or Not?
Do you rush to file your tax returns as soon as possible? If you get all your documentation, this might even be as soon as the end of January. But is filing early a good idea? Let’s review the pros and cons to file your taxes early. Then you can decide what’s right for your…
7 Ways to Plan Ahead to Take the Stress Out of Tax Day
April 15 is a dreaded day for many people simply because it’s the deadline for filing personal income taxes. The truth is this day doesn’t have to be ominous or overwhelming. By getting a jump on your income tax preparation and savings, you can help take the stress out of tax day. Here are 7…
5 Easy Ways to Plan for Taxes for Your Business
If you own a small business, there are many considerations when planning for taxes. In some cases, you have choices regarding the timing of income and expenses that can impact your taxes both for this year and next. One of the best things you can do is to plan for taxes for your business. Getting…
5 Year-End Tax Planning Strategies for Individuals
Filing income taxes can be a stressful experience for anyone. However, the more steps you take to plan ahead for taxes, the better off you’ll be. As the year draws to an end, it’s important for you to begin year-end tax planning before tax season is upon us. If you wait too long to formulate…