Questions From Our Inbox

Hello,

I just got a job where I can work remotely and I am thinking of heading abroad and traveling to a different country every month. I will be getting paid from a US company so I am not sure if I can use things like the FEIE, can you confirm?

— David


Hi David,

Thank you for contacting Greenback Expat Tax Services, you have come to the right place! I have received your email and from the sounds of it, the income you are earning would be considered foreign earned income.

As you are physically outside the US when the income is made, it is technically “earned” in a foreign place… thus qualifying as Foreign Earned Income, and eligible for things like the Foreign Earned Income Exclusion.

In order to claim the FEIE, you need to qualify under either the Physical Presence Test or the Bona Fide Residence Test. Most digital nomads won’t have enough ties abroad to claim bona fide, but you should be able to use the physical presence test. Your only potential complication would be showing a tax home outside the USA, so I would try and limit any ties to the USA to show that your intention was to be living abroad for the year. 

Here are some resources that will help:

If you have more accountant-specific and technical questions, we can set you up with an accountant for a consultation to discuss in greater detail.

I hope this helps!

Sincerely,


Questions From Our Inbox is a series where we answer expat tax questions from all around the world. Have a question you’d like answered? Comment yours below or join the conversation on Facebook, and keep an eye out for future posts!

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