Messages

1

Expat life / Diversifying Internationally

« on: February 11, 2020, 05:48:37 AM »

Hello,

I've been looking into diversifying Internationally via getting 2nd passports and buying international real estate. It seems to take a lot of work, increase expenses, and increase general maintenance required so I'm beginning to doubt whether this will even help.

Is something like this worth it to protect against US collapse or dictatorship? Is this something you've also looked into?

2

Taxes / -Marriage, Taxes, and the FEIE

« on: January 01, 2020, 09:32:24 PM »

According to the IRS, if one gets married on any date within a tax year, they can declare married on their tax return. Also, the tax year for an expat can extend months beyond the normal tax year.

Does this mean that if I claim the FEIE for 2019 and extend my 2019 tax year to June 2020, that as long as I am married before June 2020, I can claim Married Filing Jointly on my 2019 tax return?

Also, would she be able to contribute to a deductible Traditional IRA or backdoor Roth for 2019 and 2020 even though we wouldn't be able to physically be in USA until 2021 since the visa application process takes about a year?

Thanks Mr. Cracker! Your tax ingenuity has changed my life.

3

Taxes / How Would Marriage Affect my Taxes?

« on: April 25, 2019, 03:42:43 AM »

I've been projecting what would happen tax wise if I got married to this amazing woman who's captivated my heart. We live abroad but could possibly end up back in the states, unlikely though. My projections are below for married vs single and Cali vs abroad for a hypothetical situation to better understand what would happen. Feel free to ask how I got my numbers for any of the numbers below.

My biggest confusion is regarding FICA taxes. Online FICA calculators say my FICA taxes wouldn't increase but based on my readings of tax documents, my maximum owed SS taxes would increase. One individual would be earning the income but I don't think this matters since b be earning as a unit if we filed married filing jointly. I also am quite sure my FEIE would double.

The numbers below include a 12000 standard deduction per individual and maxing a 401k for one person (19000). I don't think being married allows one to double their 401k contribution if their spouse isn't working at the same company.

*All numbers are hypothetical and necessarily my actual numbers.

                                           Keep under 250 or extra .9% tax   
Abroad     Single   MFJ   
Income   157040   157040   250000
FEIE   103900   207800   207800
Roth          6000       0                12000
FICA   10237.88   12013.56   19125
Taxable Inc   22140   0   0
Taxes Owed    5313.6   0   0
Total Tax   15551.48   12013.56   19125
         
Cali           Single   MFJ   
Income   157040   157040   
Federal   24539   16968   
Roth    6000   11000   
FICA   10237.88   12013.56   
H Insur   2000   4000   
Cali Taxes 9682   6526   
Total Tax   44458.88   35507.56   

4

Taxes / Re: Am I Eligible for the FEIE for 2017?

« on: July 13, 2018, 02:41:28 AM »

Figured out that I am eligible but only on a prorated amount. Now to figure out if prorated means prorated of the tax brackets or if I only get to use the smallest brackets.

5

Taxes / Am I Eligible for the FEIE for 2017?

« on: July 12, 2018, 05:35:26 PM »

This is the place that inspired me to move abroad in the first place so I wanted to ask something as a fascinating new realization struck me.

I just realized I may be eligible for the FEIE since we get to decide our dates based on the tax year ending on October 15. I left the states on September 21st, 2017 and haven't spent a day in the states since then. I took the FTC on some investment income but I believe this won't affect anything. By September 2018, I will have been abroad for over 330 days and the 2017 tax year will still be fileable. Does this make it so I can claim the FEIE for 2017?

6

Taxes / FEIE and Roth Conversions in the Same Year

« on: May 10, 2018, 12:59:01 AM »

Can I use the FEIE for earned income and the standard deduction for roth conversions in the same year?

7

Travel hacking / Re: Travel Hacking From Abroad

« on: February 28, 2018, 01:58:57 AM »

Deep down, I'm thinking to give up on card hacking as it seems to alter my behavior. I still haven't found a use for Hilton or IHG points, I stay in month long rentals which are vastly cheaper. Even Chase Reserve has flights that are limited relative to using cash.

Alliant has a kick ass 2.5% cash back card with no foreign transaction fees but when I used my mailbox address, they asked for a utility bill with my name on it. Am I doomed to failure in my hacking endeavors?

I could use my family address in California but I don't want California having any reason to hunt me down for taxes. Maybe I'm overly cautious but it would more than negate my potential hacking benefits. Still, 2.5% cashback would be very nice if I can convince Alliant to send me the card.

8

Travel hacking / Re: Travel Hacking From Abroad

« on: January 24, 2018, 04:45:53 AM »

Good suggestions.

I actually tried to do this recently for the Cap One Venture but the application said I could not use a commercial mailing address for my application.

9

Travel hacking / Travel Hacking From Abroad

« on: January 23, 2018, 06:07:14 AM »

Some time ago, credit cards couldn't be directly sent to an address outside of the USA by the card company.

This means that travel hacking from abroad is a pain. I have to have a card sent to my address abroad after having it sent to my address in the states to use the physical card.

I also have to ensure it is a no foreign transaction fee card.

It seems using cards to prepay expenses for travel hacking and having a no annual fee, no foreign transaction fee card on me for daily use is the way to go. That way, I can just use the card number to pay off taxes and not have to have the card shipped out to me.

10

Taxes / Re: Steadily Increasing Tax Efficiency

« on: January 21, 2018, 12:35:46 AM »

Thanks to you Curry Cracker. I'm more free thanks to it all.

I actually have been between Thailand and Mexico since then. Haven't even landed in USA on flights. I have seen multiple doctors here and established my home itinerant style but for now in the 2 countries mentioned. I'm sure more will be added to the list in the coming years.

Before leaving, I moved the address of my banks and all that. I actually only spent a day in SD, they have very relaxed residency laws. My Driver's License is there. I've revoked my California voter rights, library card, sold my car, decluttered everything, ended health insurance. I have to no intentions to return to California ever. The company I work for and my parents are there. Nothing else.

The source of income is where the services are performed so I'm clean there. It's a shame though, that link gave me a 403 Forbidden. I'll try with a VPN soon to see if I can access it from Europe or the states.

My accountant said it's looking okay for the last quarter.

Thanks for guidance.

If you ever have any more tax efficiency upgrades, please share them. Thanks for making the world a better place.

11

Taxes / Steadily Increasing Tax Efficiency

« on: January 17, 2018, 08:04:20 AM »

Awesome start.

I've been slowly getting more tax efficient in my lifestyle. You inspired a lot of this with your Never Pay Taxes again series.

Here's some of my changes so far:

Left California-
I actually became a South Dakota resident in July last year and left California in September but kept paying California taxes till the year end. I'm wondering if I can claim part year resident and get the October-December California taxes back. Do you have any wisdom in this?

Left USA
Claiming the FEIE as I now live abroad permanently. Funnily, 2 health challenges I experienced previously dissipated with my moving out.

Started a 401k long ago
Great benefits for many in the company.

Just did non deductible traditional IRA contribution for 2 years. Converting this all to a Roth as soon as the funds clear. May do this for some family as well.

All in all, I am very grateful for you helping me save 10's of g's in taxes for me, many in my family, and in the company I work with. If you know at all about the California part year residency, please let me know as it could save me a few more g's to put towards FI.