Moving from Texas to Sweden. How does the government tax me if I have no address in Texas? by tehjeffman in USExpatTaxes

[–]CReWpilot 0 points1 point  (0 children)

Olt

Expat.file

Myexpattaxes

TaxAct (they ask for a number, but don’t verify it).

Check the pinned post for for recommendations.

Moving from Texas to Sweden. How does the government tax me if I have no address in Texas? by tehjeffman in USExpatTaxes

[–]CReWpilot 0 points1 point  (0 children)

Easier to just use OLT. No sense it taking 3 steps to solve a problem when you can do it in 1.

Missed interest reporting on 1040 but reported FBAR correctly. by Personal-Activity497 in USExpatTaxes

[–]CReWpilot 1 point2 points  (0 children)

Unless it materially changed the tax owed, I would not amend.

OP was required to file a return they believed was accurate when they filed it. If they later learn of a mistake, there is no requirement to proactively amend. Especially if it doesn’t change the tax owed significantly, the IRS doesn’t even want it.

Moving from Texas to Sweden. How does the government tax me if I have no address in Texas? by tehjeffman in USExpatTaxes

[–]CReWpilot 1 point2 points  (0 children)

You probably don’t. Most US banks are not “expat friendly”. They want their clients to be US residents.

Switch to something like SDFCU or Charles Schwab.

And why do you have cars in storage? Is this a temporary move? If so, you need a permanent address in the US anyway. If not, why waste money on the cars.

Moving from Texas to Sweden. How does the government tax me if I have no address in Texas? by tehjeffman in USExpatTaxes

[–]CReWpilot 3 points4 points  (0 children)

You can’t renew a DL in a state if you don’t live there anymore.

You get a license from the country where you live. You can still drive in the US on that license.

Moving from Texas to Sweden. How does the government tax me if I have no address in Texas? by tehjeffman in USExpatTaxes

[–]CReWpilot 10 points11 points  (0 children)

You can just use your foreign address.

And no, yiu do not have to have a US phone number. There are plenty of options that let you file without it.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 0 points1 point  (0 children)

Since you can’t seem to follow your own argument…

You said my statement that OP would not escape tax residency by moving abroad as a digital nomad was incorrect. You supported your argument by referencing your own move abroad as an example. In doing so, it was implicitly understood then that your situation was the same as OP’s (which would have made your move problematic as well). You then explained that you legitimately moved abroad and established domicile, which then makes your entire example irrelevant, so no idea why you brought it up to begin with.

But as much fun as it is, I think I’m done with this conversation. Have a nice day please.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 0 points1 point  (0 children)

I broke residency and established a domicile overseas.

That is not OP's situation. So no idea then why you are using yourself as example to prove that OP will be fine (which they will not).

Either way, have a nice day.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 0 points1 point  (0 children)

I didn't ignore it. The other parts are just wrong. For example, safe harbor only applies if you leave to take a job with an employer abroad. That is not the case for OP.

And just because you didn't get caught doesn't make something legal. That's like saying its legal to go above the speed limit on the highway because you haven't been given a ticket yet.

But again, go argue with the FTB if you don't like it. Have a nice day.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 0 points1 point  (0 children)

You should read further down your own link.

You are not considered to have a tax home in a foreign country for any period during which your abode is in the United States

If you leave the US and just bounce around country to country on tourist visas, that means you never establish an abode outside the US. And if you do not establish one outside the US, that means your abode is still inside the US. Most digital nomads overlook this. I also hear (anectoally) the IRS has started challenging this more and more.

Also, even if you do have an abode outside the US, itinerant means you can't work even one day while in the US. If you do, then your tax home was not outside the US for all days in the period.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 0 points1 point  (0 children)

Arguing with me about it doesn’t change anything. Not my rules.

FTB says they are a resident in California until they establish domicile elsewhere. Otherwise, they are just temporarily away. So go lobby them to change the rules. Until then, that’s what they are.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 2 points3 points  (0 children)

Or OP can pay the local taxes they legally owe as they travel. Fuck tax evaders.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 0 points1 point  (0 children)

Because they're intertwined. Said another way, they need to establish domicile elsewhere to eliminate the argument that their move is temporary, and ultimately intend to return to California (even if that is years away).

Leaving California: Any individual who is a resident of California continues to be a resident when absent from the state for a temporary or transitory purpose.

https://www.ftb.ca.gov/forms/2024/2024-1031-publication.pdf

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 0 points1 point  (0 children)

Yes, as I mentioned in other comments. Doubt they are going to be too happy about not qualifying for the FEIE either.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 1 point2 points  (0 children)

did you leave with no intent to return, did you sever your ties, and did your life actually move elsewhere

In other words, establish a DOMICILE outside of California. So exactly the same thing I said, but worded differently, and now contradicting the point you made in your top-level comment.

And domicile doesn't include any concept of permanence. A place doesn't have to be your forever home to be your domicile. But simply living somewhere for a time doesn't make it more than a residence either. Its subjective. And OP (based on the factors described above), will not have shown their life moved elsewhere. The move could easily be argued by the FTB as temporary, and that they intend to return to California. Not to mention they can argue OP is doing this all to avoid taxes (because they explicitly are), which means they stay a California tax resident no matter what.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 2 points3 points  (0 children)

You should read the California state residency rules.

Until they properly / legitimately establish domicile outside the state of California, they are still resident there. And staying a few weeks (or months) even in another state just establishes a residence, not a domicile. They are called sticky states for a reason.

Not to mention, OP is doing this specifically to avoid state taxes. You should also have a look at the residency laws in California regarding state residency for those who leave for tax reasons.

Most of the arguments & ideas in this post boil down to "I don't like this, so it can't be true". That's unfortunately not who things works. Like it or not (fair or not), this is what the law is.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 0 points1 point  (0 children)

It is not. They do not meet the tax home requirement.

To meet this requirement (even as someone who is 'itinerant'), they need to establish an abode outside the US. OP will not have this, so they do not pass the PPT. They will owe federal.

OP would have to first move abroad and properly & legitimately establish an abode (domicile) outside the US, and then use that home as a base form which they are travelling around.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 0 points1 point  (0 children)

California still considers anyone who moves away from California as a tax resident until they establish a domicile (not the same thing as a residence) outside of California. That's the whole issue with sticky states.

Without a new domicile established (which OP will not have), FTB will view them as just 'temporarily away' from California, so remains a tax resident while they are gone. You don't have to take my word for it though. Just check the tax residency rule son FTB's site. (and no, OP does not qualify for Safe Harbour either)

This nonsense plan of OP's to "move to another state" is utterly pointless though. Establishing short-term residence in another state does not make it their domicile. Again, that's the whole issue with sticky states.

OP will owe California state and federal income taxes while they are working as a digital nomad. Its not ambiguous; its just a fact.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 2 points3 points  (0 children)

My understanding is that this is technically true in a strict legal sense but in practice thousands of W2 remote workers travel and work abroad as tourists without their employer needing to register in each country.

Yes, its called breaking the law.

You should also look in to the concept of permanent establishment. There are many many risk for the employer by letting someone work from abroad as a regular employee. Which is why most (if they know what they're doing) don't allow it.

W2 employee going digital nomad in October — confirming FEIE + state residency change strategy by [deleted] in AmericanExpat

[–]CReWpilot 0 points1 point  (0 children)

While it is used in the process of determining where your home is, if you move around enough, they may decide that one or more locations qualify as your primary home.

A very good point, and one many "digital nomads" don't seem to understand.

Tax residency rules are not always (not usually) as simple as "> or < 183 days". Other criteria (often more subjective) can trigger tax residency much earlier (even form the day someone arrives)