USA Expat Tax Advice and Services

Taxes for USA expats can be complex. The USA is one of less than a handful of countries that tax citizens on worldwide earnings no matter where they live.

If you are employed by a foreign company and stationed overseas for the full year (in qualifying countries) you will pay tax on your earnings where they are earned and have the first $100,800 (in 2015) of earnings excluded from USA income tax. However earning above that level will be taxed where you earn them and by the USA. Learn about the Foreign Earned Income Exclusion on the IRS web site.

The IWantOut and USExpatTaxes SubReddit are forums to search for more information and learn from others. Taxes for Expats is one service many USA expats use and have been happy with.

image of the front of the current USA dollar

Like banking, taxes (at for USA citizens) are one of the more difficult issues of an overseas (including nomadic) lifestyle.

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USA Proposes Rule to Welcome International Entrepreneurs

The U.S. Citizenship and Immigration Services (USCIS) is proposing a new rule, which would allow certain international entrepreneurs to be considered for parole (temporary permission to be in the United States) so that they may start or scale their businesses in the United States.

Read the advance version of the notice of proposed rulemaking: International Entrepreneur Rule. To submit comments, follow the instructions in the notice.

“America’s economy has long benefitted from the contributions of immigrant entrepreneurs, from Main Street to Silicon Valley,” said Director León Rodríguez. “This proposed rule, when finalized, will help our economy grow by expanding immigration options for foreign entrepreneurs who meet certain criteria for creating jobs, attracting investment and generating revenue in the U.S.”

The proposed rule would allow the Department of Homeland Security (DHS) to use its existing discretionary statutory parole authority for entrepreneurs of startup entities whose stay in the United States would provide a significant public benefit through the substantial and demonstrated potential for rapid business growth and job creation. Under this proposed rule, DHS may parole, on a case-by-case basis, eligible entrepreneurs of startup enterprises:

  • Who have a significant ownership interest in the startup (at least 15 percent) and have an active and central role to its operations;
  • Whose startup was formed in the United States within the past three years; and
  • Whose startup has substantial and demonstrated potential for rapid business growth and job creation, as evidenced by:
    • Receiving significant investment of capital (at least $345,000) from certain qualified U.S. investors with established records of successful investments;
    • Receiving significant awards or grants (at least $100,000) from certain federal, state or local government entities; or
    • Partially satisfying one or both of the above criteria in addition to other reliable and compelling evidence of the startup entity’s substantial potential for rapid growth and job creation.

Under the proposed rule, entrepreneurs may be granted an initial stay of up to two years to oversee and grow their startup entity in the United States. A subsequent request for re-parole (for up to three additional years) would be considered only if the entrepreneur and the startup entity continue to provide a significant public benefit as evidenced by substantial increases in capital investment, revenue or job creation.

As is always the case when rich countries seek to attract entrepreneurs they are seeking those that are already fairly well off and successful. And despite the difficult hurdles for entrepreneurs and business people to get working visas to the USA there are still many seeking to do so. This would be a good step, even if it leaves many people without an opportunity.

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Vanlife in the USA

I have been reading about the possibilities of living in a van (customized to be a small RV) for several months. I am getting more interested in this idea. The cost of living in the USA is so high, especially if you want to travel – which I do.

The combination of where I want to travel (National Parks, National Forest and nature largely) and the cost effectiveness for van living works out very well. You can often park for free in US National Forest and BLM land. Also the cost of campgrounds is much less than any form of lodges, motels or hotels; so even in the instances you pay for lodging the costs are greatly reduced.

Another option for free parking are many Wal-Marts across the country actually don’t mind RVs and vans parking overnight. Many other businesses are hostile to just using their parking lot overnight when it isn’t being used. I must say this is something that greatly increases my opinion of Wal-Mart. I am not a huge fan in general but this is a very real positive action they are taking. It definitely encourages me to shop there.

Stealth parking on city streets or parking lots is another option with van living. Often cities seek to stop such living which is why the stealth part is important. Some cities and residents are more apposed to the practice than others. Obviously if there are negative externalities from you parking your van for a long time that will encourage people to seek to stop that. But if you don’t make anyone’s life worse there is much less likely to be an issue.

Even if you don’t it can make residents, police or security guards nervous (which I understand is possible in some instances) and that is something that again makes it more likely you will be bothered and maybe not allowed to park. I am still in the early phase of learning about all this but it does seem a tactic of driving to a sleeping spot at night and leaving early in the morning is a good idea. And moving around so you don’t park in the same spot (that people will notice anyway) for long periods of time.

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One of the words I learned recently is boondocking, which is free camping and at least when I have read about it means also off the grid (no electrical connections, water…) for your RV (or a van that is able to plug in to services). I knew that this was somewhat available on USA Federal Government lands (BLM and forests) but I think it is much more available than I thought (I am still learning so…).

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Peer to Peer Car Rental

Turo provides peer to peer car rental in the USA. I have rented cars through them before and have found it useful. A big part of the reason I do so is I find the big rental companies pricing so opaque. And if you want something like an SUV the pricing is often very high through car rental companies.

And it isn’t just the pricing that is opaque through the big rental companies, even the rules are crazy. Some seem to block you from renting if you are local (for example, if you didn’t fly into the city) or if you don’t have car insurance (which I don’t because I don’t own a car). It is all just a lousy customer experience to deal with them.

Toyota Rav 4, Skyline Drive, Virginia

My Toyota Rav 4 on a visit to Shenandoah National Park in Virginia.

You can also chose to rent out your car through Turo. It isn’t really ideal for doing while you travel overseas, as someone needs to deal with the car (get people the keys, check it out, clean it up…). But if you had a friend that wanted to pick up some spending money maybe you could leave it with them while you travel.

When I went on my oversea travel adventure I sold my car before I left. And actually I still would as I planned to be gone for years. But, if you were doing something like going to South East Asia for 6 months, you could possible have your car earning money while you were gone.

Eventually there might even be model where you can leave your car with a location that deals with arranging pickups etc.. I think that would be a nice addition to this business. I think it is also a pretty good business for Turo also. One big advantage is they can sell insurance at a huge markup (so make lots of money) and they also get a portion of the rental payment (I think 20% of it).

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