FOREIGN EARNED INCOME EXCLUSION - #1 Tax Break for US Expats and Digital Nomads

By Ken Fisher

Learn how to live tax-free in one weekend

This book is a must-read for anyone considering a 'location-independent' lifestyle. Read this book and learn how to live better (for less) abroad. For instance, did you know that the US tax code allows you to 

• Language: English
• Publisher: Tax-Free.org
• Release date: Aug 21, 2022
• ISBN: 9781087977072

Ken Fisher

For over thirty years, the tax advisors at Tax-Free.org have designed and perfected international tax strategies and opportunities. In the process, we've flown millions of international air miles, formed and built foreign companies, opened foreign bank accounts, worked remotely, and gained second residencies in countries abroad. We've lived the expat lifestyle.By experiencing every aspect of expatriate life firsthand, we have the unique ability to convey to our clients and readers holistic expat strategies in clear, accessible, actionable language.Through our publications and consulting work, Tax-Free.org provides our clients and readers around the world with global tax strategies and lifestyle approaches that have the power to change their lives.

Book preview

FOREIGN EARNED INCOME EXCLUSION

(THE FEIE TAX-BREAK)

#1 TAX BREAK FOR US EXPATS AND DIGITAL NOMADS

Tax-Free.org

Tax-Free.org

This publication is designed to provide competent and reliable information regarding the subject matter covered. However, it is sold with the understanding that the author and publisher are not engaged in rendering legal, financial, or other professional advice. Laws and practices often vary from state to state and country to country. If legal or other expert assistance is required, the services of a professional should be sought. The author and publisher specifically disclaim any liability that is incurred from the use or application of the contents of this book.

There is no one-size-fits-all solution in tax planning. Many individual factors come into play. So, only your own skilled international expat tax advisor can provide assurances that the information contained herein–and your interpretation of it–is applicable or appropriate to your particular set of circumstances. So, please hire someone to help.

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All rights reserved.

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PRAISE FOR ‘FEIE’ BOOK

A home run! I had no idea about the financial benefits of living abroad. — Kelly B., Entrepreneur

"The book offers an insightful guide full of important information for those of us who want less stress over money and a better quality of life.’’ — Victor H., multi-company owner

A valuable investment in knowledge. — Bryce T., Securities Trader

ABOUT THE BOOK

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WHAT IS THE ‘FEIE TAX-BREAK’ ABOUT?

This book is a must-read for anyone considering a ‘location independent’ lifestyle. Read this book and learn how to live better (for less) abroad.

Given the recent pandemic, the future of business is remote working. But what most people do not know is that there are substantial financial benefits when you live and work abroad.

By the end of this book, you'll know and understand how to how to qualify for the lucrative ‘expat’ tax breaks including the Foreign Earned Income Exclusion (the FEIE Tax-Break) that can save you tens of thousands of dollars every year.

MISSION

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TAX-FREE.ORG IS YOUR RESOURCE TO DEMYSTIFYING ‘LIVING BETTER ABROAD’

Tax-Free.org’s Mission

For over thirty years, the tax advisors at Tax-Free.org have designed and perfected international tax strategies and opportunities. In the process, we’ve flown millions of international air miles, formed and built foreign companies, opened foreign bank accounts, worked remotely, and gained second residencies in countries abroad. We've lived the expat lifestyle.

By experiencing every aspect of expatriate life firsthand, we have the unique ability to convey to our clients and readers holistic expat strategies in clear, accessible, actionable language.

Through our publications and consulting work, Tax-Free.org provides our clients and readers around the world with global tax strategies and lifestyle approaches that have the power to change their lives.

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Tax-Free.org

www.LiveTaxFree.com

CONTENTS

Introduction

Chapter 1

Tax Breaks Are More Fun

Chapter 2

Qualifying for the US FEIE Tax Break

Chapter 3

Step #1: Move Your ‘Tax Home’ Abroad

Chapter 4

Step #2: Get to Work Abroad

Chapter 5

Step #3: Prove You Live Abroad

Chapter 6

Step #4: Claim Your US Tax Break $

Chapter 7

BONUS: How to Avoid Foreign Taxes

Chapter 8

Additional Tax Breaks for US Expats and Digital Nomads

Conclusion

Appendix Contents

Appendix A

Appendix B

Appendix C

Afterword

BACKGROUND

Where is all the money going?

Most people don’t realize this, but taxes are the largest expense anyone has in their lifetime. The results are shocking when you add up a lifetime of tax bills.

Yet, the US government doesn't tax every dollar equally. Some dollars don't get taxed at all.

Thus, if you learn the rules and structure your affairs properly, you can legally enjoy a far more prosperous life abroad, without paying much tax at all.

What is Tax-Free Income?

25 Small

American expats can attain a life abroad with little to no taxes and a lower everyday cost of living.

For example, earn $10,000 a month working on US soil and your tax bill comes to around $3,500 monthly. Thus, your ‘take-home pay’ is $6,500 after US taxes ($10,000 income minus $3,500 in taxes =$6,500).

Now imagine that same $3,500 monthly going straight into your investment fund every month, simply by living tax-free abroad.

Plus, because of the everyday lower cost of living typically found abroad, you’ll have thousands more to invest each month.

What’s not to like?

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Why go back to the office when you can ‘live better for less abroad’?

* * *

A Freedom Plan allows you to spend more time enjoying what matters.

~ TAX-FREE.ORG

* * *

INTRODUCTION

WHAT’S NOT TO LIKE ABOUT $0?

Your financial life is filled with countless challenges and personal decisions. Achieving a better ‘quality of life’ does not have to be complicated.

To live Tax-Free, make your ‘tax breaks’ equal to your ‘income’

For instance, did you know that the US tax code allows you to pay absolutely $0 US income tax on up to $125,000 (or more) when you ‘go international’?

05 Full

Single: $125K tax-free per year

Income: $124,950. Tax breaks $124,950. Taxes $0!

And if both you and your spouse qualify, you can double the tax-free ‘joy’ to $250,000 (2 x $125,000) every year and not owe Uncle Sam a nickel ($0 in taxes).

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Married: $250K tax-free per year

Income: $249,900. Tax breaks $249,900. Taxes $0!

How is this possible?

It’s the special tax treatment given to US expats and digital nomads—and it’s an appealing aspect of living abroad.

Yet, most Americans are unaware of the money-smart benefits of working remotely from abroad.

Freedom-Factor #1 is lowering your taxes by working from abroad.

Follow our five step roadmap starting in Chapter Two and you can put tens of thousands of dollars back in your pocket every year.

After all, what is a goal without an action plan?

Every day at Tax-Free.org, we answer your most important questions about ‘going international.’ Whether you're already an expat living overseas or just starting to look, you have questions that need answering.

FREEDOM FACTOR ONE - LOWER TAXES ABROAD

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Your ‘tax burden’ could drop dramatically

Note: If you are self-employed or work for a US company (including your own), you also have the option to avoid (self) employment tax. Remember, employment taxes are different from income taxes.

FREEDOM FACTOR #2- LOWER COST OF LIVING ABROAD

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Freedom-Factor #2 is lowering your everyday cost of living by ‘going international.’

Depending on your current US location, you can reduce your annual cost of living by up to $36,000 ($3,000 a month) or more by going international.

Also, in many places abroad, the price of homes