Taxes Americans Have to Pay... No Matter Where They Live
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- เผยแพร่เมื่อ 3 ก.ค. 2020
- nomadcapitalist.com/tax-reduc...
US citizens are required to file and pay taxes on their worldwide income, even if they live overseas. You can use tax exemptions, treaties, credits, and exclusions to dramatically reduce your US tax obligations as an expat.
1:19 US persons required to pay US taxes on their worldwide income no matter where they live
4:20 Americans CAN save money going overseas
6:02 What you need to file
6:51 What you don't have to report
8:07 "How are they going to find out?"
10:14 Regulations for your business overseas
10:53 Passive income regulations
11:43 How to legally reduce the amount of tax dramatically
Andrew Henderson and the Nomad Capitalist team are the world's most sought-after experts on legal offshore tax strategies, investment immigration, and global citizenship. We work exclusively with seven- and eight-figure entrepreneurs and investors who want to "go where they're treated best".
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Andrew has started offshore companies, opened dozens of offshore bank accounts, obtained multiple second passports, and purchased real estate on four continents. He has spent the last 12 years studying and personally implementing the Nomad Capitalist lifestyle.
Our growing team of researchers, strategies, and implementers add to our ever-growing knowledge base of the best options available. In addition, we've spent years studying the behavior of hundreds of clients in order to help people get the results they want faster and with less effort.
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DISCLAIMER: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Nomad Capitalist can and does not provide advice unless/until engaged by you.
In the USA, the taxes are high and the roads are horrible ... that's all you need to know
P.S... that "renounciation fee" by the US government is one of the most vindictive moves I have ever seen
Ikr?
We pay ridiculous taxes and have nothing to show for it.
@Fareed Waseem I don't want to wait around for the US to catch up. I'm going to use my options while they're still available
Just like Andrew says, go where you're treated best. Certainly not western society
@@coolbeans6148 we are bounded by the unsustainable economics of suburbia. Hence, we pay a shit ton to support a depressing urban landscape and a military we haven't used ( for other than bombing soverign nations) for decades
US gov pisses me off.
I just want to be left alone.
@@karlabritfeld7104 I would love too but go where? What country government leaves people alone?.
None...
I wish I could escape.
@@karlabritfeld7104 I edited my reply.
Sry it gets me mad thinking about it.
I get it me to but you may want to rethink that I live in Thailand like a king on my SS ...
@@walkertongdee How much is your SS? That you are able to live so lavishly?
@@walkertongdee no thanks.
Ill gladly trade that all away for freedom.
Public education? Get rid of it.
SS? Get rid of it.
Taxes? Get rid of it.
Just seems criminal to collect taxes and not provide any benefit of said taxes....
Exactly, and when people bring up that they benefit from the taxes when they visit back in the US, I just say, “alright, why not offer the benefits to everyone who visits the us, citizens or otherwise, and then you can tax anyone who even steps a single foot on American soil.”
What an appropriate video for so-called "Independence" day.
God it's so depressing.
I'm addicted in this channel, there is so many interesting information!
Glad to have you.
"no taxation without representation" lol
"there are rumors you still have to report taxes if you expatriate" It's true, sir. Expats are still citizens and have to report FBARS and have many forms via FATCA, plus double taxation as the USA taxes you as well as the country you expatriate to.
Signed: a Canadian American citizen
Expatriate means renounce U.S Citizenship
@@dallas8628 It just means living abroad, not renouncing citizenship entirely
Honestly if you're an American and you plan on living abroad for any extended period of time whether you're rich or not you might want to consider renouncing your citizenship. Even if you end up paying no taxes to the US, compliance in and of itself has a cost. It's a back door tax if you will.
Andrew; I have enjoyed all your videos but I am always seeking info on what forms I should file if I just live on SSI and make well under $100k a year. You could have a big market if you had a desk that did the very low income of expats who retired offshore. Something like H&R Block which would only require a few forms and people could file thru you on the computer. Think out of the box.
What about us American expats living overseas who don’t have hefty financial assets and live day to day supported by our non-U.S. citizen life partners/spouses?? I live in a country that has discriminated against me for jobs I’m qualified for, so I decided to remain unemployed. But my partner makes enough to support two families, though it’s just the two of us. So for several years, since I’ve earned $0.00 income, I haven’t filed with the IRS. I don’t own any major assets, like own a house or car or operate any financial assets like IRA or online brokerage account. How would entities like the IRS or FATCA perceive someone like me? What responsibility, in the least, should I be having with the tax monster while being a U.S. citizen living abroad with a foreign bank account that has less than $1,000 in it?
Well hopefully in the meantime you've gotten a definitive answer, but as a fellow non-tax pro US expat, with a friend in a similar situation in the UK, I think you are exempt from filling. Luckily :)
But of course if that situation changes, good ole Uncle Sam may come knocking.
Good analysis, thumbs up.
Interesting video and as everyone already knows here the US tax regime is crazy but is just the reality of being an American person.
ExPats are going to skyrocket in the next decade
If a socialist ends up winning after Trump or biden, im fucking bailing. Im not rich but i can certainly move.
The problem is where? Ive been looking for a few years now, a place to bail out to when the US collapses. Having a hard time with.
What are you having a hard time with specifically?
@@nomadcapitalist I'm just a man that sees the writing on the wall. That's it
If I leave the states and live in Europe for work I have to pay that countries taxes and SS as well as med tax ….. oof 😥
I would just like to point out that Canada also uses +1 for phone country codes. A bit unfortunate!
8:45 The cartoon henchman accent has me 💀😂
Do you think that some other CBI Programs will appare soon and which is that.
Also what do you think about Grenada. They will reduced the rates or what.
So, If I am permanently living over seas, and have NO financial interests Or income from the U. S., how is the IRS fining AND finding me, if the entirety of my income is also abroad?
Hello Androw. Sant Kitts and nevis has reduced the donation price for family to 150 k instead off 195 k.
When you will the video 😁
Well, at least file... there is a foreign earnings exemption of about 100,000 USD per annum. And the reporting requirement don't stop there. You also have to file an FBAR to the US Treasury every year - a list of your foreign accounts and the max balance over the past 12 months.
Been watching a number of your videos, thanks for the sharing of knowledge!! Without getting long winded, I'm both a military retiree, and a government Civil Service retiree under FERS (base retirement, SS, and TSP incomes). My wife is Spanish, who became a US citizen and is also working towards a Civil Service FERS retirement. When we both retire, we're looking at relocating to Spain. My question more specifically, is if my wife returns to her Spanish Citizenship, how if at all does that affect her Civil Service retirement income?? I've heard that if I relinquish my US citizenship (which I have no intention of doing) I will lose all of my military retirement, wondering if the same is true for my wife. Thanks.
This is really fairly complicated issue. You should really seek the advice of a certified tax attorney versed in both US and Spanish fiscal law. There is likely a US-Spain tax treaty. Will that protect you? Partially, the problem with these so-called dual taxation protection treaties is that often the tax systems of different countries do not perfectly overlap and expats often fall through the cracks. You end up paying this here and that there. When looking at taxation, you have to consider active income, passive income, capital gains... Another issue to consider with Spain is successor law. As soon as you become a tax resident in Spain, you are most likely subject to Spanish law.
Any plans for an audiobook?
If u r a citizen of canada and work outside of the country, you are required to report all foreign income and may or may not b required to pay taxes. It depends on treaties, but u wont know until you file.
hm
So Canadians also pay tax when they are out of Canada?
Hey Andrew I have two questions,
1. What other citizenship's do you hold?
2. What is the name of that sweater type?
Ralph Lauren.
You mention that your passport will show place of birth and that got me to thinking. I’m a dual national with the US and U.K. and I live in the US but my place of birth is in the U.K. so it should be easier for me to avoid the IRS when I get a passport in a different country lol I HATE the IRS and can’t wait to be rid of them lol
It just blows my mind that they can legally tax us from anywhere in the world. The whole point of taxes is to pay for public services that you as a citizen residing in that country use, is it not? Am I missing something?
Ever since watching this channel, I stopped investing in 401K's and retirement accounts. I just hate to think about the charges I get when I take it out right after renouncing
My eyes have been opened in ways I couldn’t even dream about a matter of months ago.
I’ve lived in England before, the DTA, and Ohio were terrible to deal with. My tax guy had no idea what he was doing as well.
I plan on going offshore and obtaining a new passport and dropping US passport within the next 2-4 years.
How do you handle when you have a number of US rentals?
go to Canada or ireland
Hey I am not a US Citizen, but I was in US till 2018 and moved out later. Currently i am investing US stock with my US bank account. Do i need to pay tax? If yes, please give some guidance on it. Appreciate your effort.
Im hoping this isn't a stupid question....Im moving to Mexico full time from Oregon I know I will be filing and paying yearly US Fed taxes for investments, however will I also be required to pay income taxes toward the state of Oregon my former state residence since I am no longer a full time resident? (Plus I own rental Properties in Oregon and will be paying property taxes) Thanks in advance for the knowledge boost 😬
You should ask a tax preparer or lawyer in Oregon. In my case, my domicile is Texas, and I live abroad. I am not taxed in TX, but my rental property is in Maryland so I must pay non-resident MD state income taxes on my rental income. I suppose the same is true for Oregon.
What about 401k/IRA accounts or checking/savings held in US Banks for a person that lives abroad and has renounced their USA Green Card?
Good question. Maybe it'll be switched to nonresident account (if one of your accounts offers it)
not in all cases I live overseas, retired, no other income than social security and I do not pay and I am not required to file, I'm thinking he is posing as a tax attorney and failed the exam
The definition of a US person is a bit confusing:
So how about a Canadian or Australian who worked for some years as a contractor paid taxes on a W2 while working and have only a ROTH IRA and now returned back to his home country and still entitled to Social security check that he paid for through his paycheck during his work years but He is not a US citizen or a GC holder and doesn't own any property in USA. Technically that person doesn't get a W2 or a 1099 any more In this case is this person considered a US person ? and is he obligated to file a tax return?
That person was sucked in but not anymore. What do you think Andrew?
Question: I'm applying for an employment contract in Israel, but the company is based in Virginia, U.S. Is my salary tax-free under the "Foreign Earned Income Exclusion" (FEIE)?
The two key metrics are whether you are a "US Person" and if you are in a foreign country earning income. If you are working in Virginia then you don't qualify.
When we thought we were free. What a joke 😂
Moved to Canada in 1984 at age 23. I had no clue! I'm getting ready to retire. Man am I behind the 8 ball! :o :o :o
EXPAT TAX Does not break down the new remote SE demands for a foreign country like Canada. Even if you are a US citizen. and residing in the US you are still subject to file as if you are a resident in Canada. it does not matter if you are working remotely
About 4:30 into the presentation you mentioned the foreign earned income exclusion. If you are living overseas and you earn income from American stock market trading stocks could this be included in the hundred 10 thousand dollars exclusion?
As of 2020/2021, the Foreign Earned Income Exclusion (FEIE) applies to the first $108,700 of actively-earned income, while on foreign soil, for at least 330 days out of a tax year. I believe trading stocks is *not* considered actively-earned income, and is therefore not part of the exclusion. (This is not investment advice, etc.)
Can you do a video on people with past felony convictions trying to be a nomad?
I am US green card holder living and paying taxes in UK for the last 3 years. I have not filed US tax return. Do i have the option to file 3 years tax return now along with FBAR? Can i avoid FBAR penalty because it says even if it's non-willing, its still $10K penalty? please help as i didnt know about the Expat tax and FBAR disclosure requirements.
Are the earnings subject to US taxation exclusion US or foreign earnings?
This needs to be abolished!
If you are a US person and move to Germany, and you start a business in Germany (and live in Germany), you have to file in Germany and the US? Is there a high price for this or no because of treaties? Or is this also under the 100k exception?
Yea that’s not worth it if you can have a German citizen hold the company that way you won’t have to report to the USA.
@@supercia1 wrong you have to renounce your American citizenship otherwise you have to report your income
Yes, but if you are a duel citizen and born in the UK and move back to the UK what then? UK/USA have a treaty.
Michael Fallas You will need to file the paperwork to pay taxes just like if you live in the US but your US tax bill will be $0.00 for the year.
What if you are a Green Card Holder who lives in the US but works for a company remotely in a different country while being in the US soil?
Question, are there any countries where you live in that would be worthy of denouncing your u.s. citizenship?
I was born in Mexico and was naturalized as a US Citizen through my family. If I go back to my birth country which is Mexico, and I have rental properties and make money of my rentals in Mexico. So I have to give Uncle Sam his cut do to the fact I have US Citizenship.Or any business or any money 💰 or income I make in Mexico? I have to pay US taxes.
So how does Google bank offshore and not pay tax????
So if my Income in Europe as a dual US citizen is $50K,I can use the income tax exclusion and pay nothing?
Is there seriously no way to avoid or even reduce FICA? I'm just a middle.class self employed expat, no duel citizenship yet.
$ 7.000 dollars to renounce citizenship.
In one of your videos you have mentioned that after one renunciation of his/her American citizenship you are still entitled to a collection of SS benefits benefits
HS class of 89, I've never filed inc0me t4x forms
HAHAHAHAHA!!!!!!!!!!!
How do you buy foreign property without using a bank account over there?
Wire the $$$ to the seller or an escrow account
How the u.s. find out is because you use your american name and passport. The foreign banks are required to report your information to the IRS. Use another name that also includes the passport. Not easy but possible.
If you become an expat. Can you still collect Social security checks when we eligible?
Also what happens to your 401k?
YES. Retire as an expat in a country of your choice. Not Cuba, Venezuela, terrorist countries. As an example.
Yes! In fact many people use Social Security payments as proof of income for "pensionado" visas in Latin American countries
I can’t wait to be gone! 10 year goal!
Lol , me too , in 12 years
WHY DIDNT HE MENTION THE SELF-EMPLOYMENT SS TAX ?
Can you make a video about the u.s. territories, yes I know they are a part of the united States I believe that by a few of them being near very popular travel destinations you should buy property there and just vacation from there. There's no way in my opinion to escape the united States. The United States is like being in an abusive relationship but the sex is so good and you just don't want to start over.
I am a US citizen. If i am getting US government pension and withdraw money from US 401k while i am living outside of US, do I still have to pay state and federal income tax ?
Now that they shredded the constitution in our ability to vote I'd say anyone volunteering to pay taxes now would be a fool
After some study, I once found that 401(k) does NOT qualify for the Foreign Earned Income Exclusion. Yup, that’s right; 401(k) is the only income that I can think of that’s PASSIVE GAINS yet TAXED as ACTIVE income...unless you’re out of the country in which case it’s excluded from the exclusion as active income 🤦♂️. 401k is nothing more than a loyalty program at the national level, paid for by employee/sponsors by dumping their tax liability onto you. It makes no sense IMO beyond the employer match. I also believe that any income from US federal employment does NOT qualify for the exclusion.
(DISCLAIMER: This is not investment or tax advice, etc., etc.)
You must pay US federal income tax and state income tax on you pension and 401K funds, unless you live in a non-income tax state such as FL or TX or PA. If all of your 401K is composed of Roth funds then that is tax free. If the 401K funds were tax deferred then you must pay tax on is distributions now.
1:21 *NOT Correct! The right answer is: US and Eritrea *country in East Africa, are only 2 country’s from 195 country’s in the world
That residents must pay taxes no meter where they live. Keep going...
ONLY Americans living offshore drawing foreign source income are liable to subtitle A income taxes. According to the Treasury decisions, a US person is an intermediary (withholding agent) of US source income of any non resident alien individual or foreign partnership 🤔. US person agents have nothing to do with the average American citizen.
Hopefully a quick question, Is my plan doable?
My goal is to live in another country whil6working an online job making America many.
My plan is to keep my siblings residency as my "United states residency " , and I plan to continue to pay (USA) taxes and come back to visit a couple times a year.
Colombian people now also have to report income outside the country
Even if they do NOT live in Colombia?
For Real!
Go where you be treated best?
You don't pay taxes if you don't work
Unbelievable
You said once a American ,always a 🇺🇸 American. This was a awesome video. Thanks again for sharing your experience and your knowledge.
@melanie price With effort you could change that too. Or just tell people you're Canadian 😂
11:14 cryptocurrency investments
United States and Eritrea. lol
Expatriation doesn't cost a little something...Before everything is done you'll be 3-5 years down the line and 5-7k dollars poorer....Requesting it costs 2350 dollars and you WILL need help from a lawyer down the line.
But think of all the aggravation and money you will save down the line. 10k is negligible. It costs me around 2K EUR annually to file my 1040 and FBAR and that's just for filing and this has been going on for years. Then there's the threat of enormous fines if you make any sort of unintentional mistake.
@@LisaCulton true that. It's pretty insane. Unfortunately, it was literally impossible to start the expatriation procedure during covid. You can't even start the process now.
Now that covid is basically over it is starting up again but there are massive waiting lists.
@@Akisame-LuigI-O Then you'd better get on a list as soon as possible.
@@LisaCulton Got to acquire a second citizenship first....That process should finish in Jan 2024.
@@Akisame-LuigI-O Good luck 🤞
it not true what he says here beware
even if u born outside U.S but still u.s citizen ?
Apparently, as soon as you hit 18 you’ll be subject to US taxes too
The constraint here is not where you were born; but whether you’re a US citizen.
Yes US citizen born or Naturalized or Greencard holders are subject to taxes no matter where in the world you live...personally,I think its BS I wouldn't file jack if I ever left for good...I know someone that left years ago and NEVER filed a single return he was a Naturalized US citizen but had citizenship in another nation got tired of the US bought a 1 way ticket and left for good he had a second citizenship...I dont think he ever renounced he just left for good and NEVER returned...I highly doubt the US will be able to come after all those citizens around the world in order to tax them...FATCA and CBT are disgusting and need to be abolished!
This is because of former president Obama he was far left
Actually it's not that he was left but more that he hates the USA. Brainwashed by his parents and their curcle of neo marxist friends. But then again so do most people in his party.
i love the USA so many WEALTHY WOMEN to take there money ha ha
Know what you're talking about before you spread this misinformation Aaron Russo