I had to buy a new cell phone because my phone and wallet were stolen. As such, I couldn't use my business credit card. How can I record this in my accounting so I can still deduct it and keep my books clean?

I have an S-Corp.

As long as you have a receipt, paying with cash is fine. I use a cash expense account in my books and record a transfer from the company bank to keep it at $0

it was with my "backup" debit card...

If I file personal taxes and do not claim FEIE on federal, can I file non resident tax for state?

i think you have to be domiciled _somewhere_

utrexrwuqyi Yeah, you are probably a resident of the last state where you have stayed before leaving the US. Even if your driver license already expired. And if it was California… oh, well, I hope not

so do i file a resident tax or nonresident tax?

Can't he be considered an itinerant?

Itinerant is a status that’s used for tax home, and residency is more a domicile issue

Gonna switch my license over to south dakota in July thanks for the tips tpbgtzdnmq

for US residents, anyone know if the June 15 deadline still applies to digital nomads even if they don't have a permanent foreign residence? I'm still domiciled in the US and pay the state taxes but curious if the June 15 deadline since I'm physically out of the country and qualify for the FEIE

The June 15th filing date is for Americans who are abroad on the tax filing date

ah ok, so definitely applies to digital nomads still abroad at the moment and not just expats right? (i.e. you don't need to be a resident of a foreign country?)

You do not need to be a resident of a foreign company

awesome thank you! the accounting firm i use is super slow this year and looks like they can'f finish it by may 17 (submitted everything over 7 weeks ago) and been waiting a week for reply to this question :)

This year has been tough on tax firms. First the IRS pushed back the filing date, then Congress passed not one but two provision that changed this current tax season.

yeah i figured they're overwhelmed, previous years tend to take them less than 4 weeks to complete my taxes and i normally file everything by april 15

Asking for my gf who has been out of the US for all of 2020. She is claiming FEIE and is a sole proprietor, but is confused if she has to file a resident or nonresident state tax form

Really depends on her relationship with the state

Just to confirm, I can file for an extension if I don't think I will owe any tax? i.e. I withheld more than I owe? Also does the June 15th extension for Americans living abroad count without any forms? (I can't post my sources, but just want some community confirmation 🙂 )

Americans living abroad on tax filing date have until June 15th with no forms to file. You’ll need to check a box on the return when you do file it indicating you were abroad

An extension to October 15th only requires a payment if you think you will owe taxes

does CA have a similar rule?

They do, but you have to be relocated on an employment contract

thanks Krystal

If you have an S-Corp, does that decrease the amount you can exclude for FEIE? As in, can you only exclude W2 income and NOT K-1 income?

correct

FEIE is only up to a certain amount anyway, so if you're already in excess, does it make a difference if that amount is paid out as W2 vs K1? In other words, is K1 income taxed differently?

dont you pay significantly less SE tax after some threshold near $104k?

The FEIE really doesn’t play nice in the sandbox with an S-Corp unless your maxing above the max

I just secured myself a fully remote job. They're okay paying me in whatever state I choose, although they're not set up in all places and would have to do some paperwork on their end to get set up in South Dakota. So to reiterate / follow up from some things I mentioned on other channels previously; Currently, my doctors and storage unit are in Philadelphia, but the address on my license and vehicle registration is at my virtual mailbox in the suburbs of Philly in PA, and my voter registration and banking residential address is with a friend in rural PA. As I nomad, the plan at the moment is to return to PA a fair amount, perhaps 2 - 4 times a year, and out of all of the places to keep my doctors and storage unit, PA makes the most sense.

However, I am currently physically in FL staying with a friend, and I've been strongly considering making the move to FL. Additionally, I would like to leave the U.S. in a year or so. To change my domicile to FL - I guess I would have to see doctors and bring my storage unit here, to make the best case for that? Is there any benefit in being an FL resident, but still being domiciled in PA? One of my thoughts was, maybe just change my license, car registration, voter registration, and mailbox to FL, leave a few things in PA, and then if PA comes after me for taxes, worst case, I just pay it.

But then as a follow up... do you think it might be sound advice to simply remain a resident of PA for the time being until I'm further along in my nomading project? I really haven't been gone long enough to have a good sense of how often I'll be back. I know a lot of people often use, say, their parents' address for their first year of nomading, and this would be something similar. I also wouldn't even be opposed to spending, say, 3 months out of the year in PA, but it's also possible that as I start doing this, I'll basically decide I don't want to go back.

Lastly, would I benefit fromm talking to a tax professional about this? vrntewcxkn if you think my question is simple enough to warrant free advice on Slack, I'll take it! But I'm not opposed to doing a consultation if you want to talk about that. Feel free to DM me.

wow that gave me a headache trying to think about

Really need to work on that state residency blog. Lol

yes 😛

So the insurance is a national plan. I do regularly see a primary care doctor (need to see one once every 3 months or so), but I would love to do those visits via telehealth if possible. Unfortunately, it's unclear whether the telehealth "exceptions" in PA will be allowed after COVID. I know some states are friendlier than others for telehealth. I also see specialists sometimes, but I'm not tied to any one specialist. I would happily see one in whatever state I happen to be in.

I'm lucky I don't own a car or vote lol

Voting is overrated, although this conversation may get a bit too much into politics for my tastes. The voter registration is just one more piece of evidence (in my opinion) that I'm "domiciled" in PA. Says nothing about whether I actually vote. :)

You can definitely vote in PA if you live overseas, pretty sure you don't go to prison for that.

See section 11 - Declaration

Yea. So it's any 30 days? That's fine

I mean you also have to fill out the "address of your residence." But what if there is no residence? That's the part that gets me.

You tried to use a virtual mailbox for your driver's license?

For my driver's license and vehicle registration, I already am using a virtual mailbox, believe it or not.

So, who wanted a physical address, voter registration?

Yup

Otherwise people could just get a PO Box and change districts

Yup. Yeah so the whole reason I didn't leave everything at my old address in Philadelphia is being I'm trying to make the tax case that I'm domiciled in the suburbs of Philadelphia (where I grew up and where there isn't a 3.5% wage tax) as opposed to the city itself. So my voter registration is currently with a friend, everything else is at the virtual mailbox in the suburbs.

Anyone know how strict the 180 day rule is for in-state income tax in the states? I'll be pretty close to 180 days in Colorado for this next tax year, but not sure if I have to count every literal day, or partial days, or just days I had an official lease, etc.
Anyone know how the IRS will do/think about it?

What kinds of ties do you have to the state of Colorado, were you a resident there previously?

Nope, I've historically been a Texas resident(lived there for years and own my home there). Just over the last year I've ended up doing a handful of extended visits in Colorado in airbnbs, hotels, and even some leases. All of which potentially add up to ~180 days.

Is all your income in Texas or were you working in Colorado?

Im officially based out of Texas but work remote. So in Texas?

Work performed in a state is taxable in that state. By the letter of the law, you should file a non-resident income tax return in Colorado for the time you spent working there.

That said, if you have continuously for years been domiciled in Texas, been resident Texas, filed taxes in Texas, voted in Texas, used a drivers license issued in Texas, etc., what are the chances you get hit with a residency audit? Also, it’s a 183-day rule, not 180 days.

That's sort of my thinking. Everything you said is true - DL, taxes, property, voting, etc. ~5 years of being a full on texas resident

Hello any accountant to recommend for an LLC (foreign owner) if speaks a bit Spanish much better 🙂

If you're a W2 employee of a US company, do you technically need a work visa for whatever country you nomad to?

It depends on the country. If you are visiting the UK for an on-site meeting, conference, or class no. But if you are working for the UK subsidiary and plan to stay, yes. Other countries are different.

zdggssmcxvee If you don't have a work visa you'll be restricted to 3 months as a tourist anyway.

> If you're a W2 employee of a US company, do you technically need a work visa for whatever country you nomad to?
<@U01H90Y7HCN> There are other considerations on the US-side too. It's not that simple (legally speaking). In other words, your employer may not be able to support this (most likely they won't due to payroll setups, social taxes setup in the target country, etc). Although if you're not becoming a tax resident in the target country, it may be up to the employer & domicile state in US, although don't quote me on the last one.

Go on Fiverr and you should find someone able to talk in spanish with the informations you want

Question here. I'm doing an LLC now (previously I did all work as a sole proprietor)
Can I still do my taxes as sole proprietor (IE get payments directly) or do I need to receive payments in a separate account and pay myself wages

I think you should ask an accountant to be sure

I have an LLC. Payments go to a business account and I take distributions as I want.
My taxes were pass-through to my personal reporting, though I did pay quarterlies.

Disclaimer I’m not an accountant 🙂 I believe it’s not necessary to work as an employee of an LLC that you own in order to get money out of it. You can just transfer money from the business to yourself as a draw. I’ve heard it’s important to keep the LLC’s finances separate from your personal finances and then do that formal draw to your personal bank account before spending money you’ve made through the LLC on personal things. I don’t believe there are any rules preventing you from contracting directly for other companies (bypassing your LLC and receiving money as a sole proprietor) but in those situations you won’t be covered by the protections that an LLC provides.

Yeah that sounds about right to me

Single member LLCs are treated the same as sole prop’s for taxes. You should have a business account and use that money for business expenses only and record any money you take out of the business for personal expense as an owner’s draw. Don’t set up payroll for yourself unless you set up a corporation