Let's say you work online, spend half the year in Mexico and half the year in Canada, thus you qualify for FEIE.Has anybody actually done this? Did you register your vehicle/camper in the US?I'm trying to imagine how I would justify myself in case of an audit. American registered truck, no receipts of stay because I'm boondocking...I'd be relegated to gasoline receipts. I can't imagine that ending well?

is there paper work when you cross the border,over,an back dated?

You may want to start your research at the IRS.

I do a fair bit of overseas work but not enough to qualify.Your passport stamps can document how much time you spent out of the country but check with the IRS in regards to what qualifies as your official residence/domicile. You might be in the right but still get a nasty audit because you are outside of the norm.Also, you need to check on how the online income will be reported. Typically, if it is for a job that occurs and is paid in the other country. If the online income shows up as US based income, it doesn't matter where your residence is.A final thought: If you are boondocking mostly, I'm guessing there isn't a ton of income involved. If you are only making say $30k/yr, is it worth the hassle? After standard deduction, you may only be paying 10% on $6-8k. If you can claim business expenses, it might not even be that much. Is it easier and more foolproof to just file and pay the taxes?

valhalla360 wrote:I do a fair bit of overseas work but not enough to qualify.Your passport stamps can document how much time you spent out of the country but check with the IRS in regards to what qualifies as your official residence/domicile. You might be in the right but still get a nasty audit because you are outside of the norm.Also, you need to check on how the online income will be reported. Typically, if it is for a job that occurs and is paid in the other country. If the online income shows up as US based income, it doesn't matter where your residence is. Per the IRS, if an American citizen passes the physical residence test (330+ days per year abroad) he/she qualifies for the exclusion regardless of where your employer is located. It's all about the nuts and bolts of proving you pass said test, which I can imagine proves difficult for a full-timer vs, say, someone living in a normal apartment.valhalla360 wrote:A final thought: If you are boondocking mostly, I'm guessing there isn't a ton of income involved. If you are only making say $30k/yr, is it worth the hassle? After standard deduction, you may only be paying 10% on $6-8k. If you can claim business expenses, it might not even be that much. Is it easier and more foolproof to just file and pay the taxes?I make around 90k. I have six figure federal student loan debt. Qualification for this exemption not only means that I avoid income taxes but also that my income based student loan payment falls to zero. In total, it's about 30k a year, which is substantial given my income. Definitely worth it.Thank you everyone for your opinions and information thus far. Although unlikely, if one of you reading this thread has actually done this and been audited, I'd love to hear from you. Thanks.

Any American full-timers have experience w/ Tax Exclusion?

14 Replies

valhalla360
Navigator
Aug 21, 2019
I do a fair bit of overseas work but not enough to qualify.

Your passport stamps can document how much time you spent out of the country but check with the IRS in regards to what qualifies as your official residence/domicile. You might be in the right but still get a nasty audit because you are outside of the norm.

Also, you need to check on how the online income will be reported. Typically, if it is for a job that occurs and is paid in the other country. If the online income shows up as US based income, it doesn't matter where your residence is.

A final thought: If you are boondocking mostly, I'm guessing there isn't a ton of income involved. If you are only making say $30k/yr, is it worth the hassle? After standard deduction, you may only be paying 10% on $6-8k. If you can claim business expenses, it might not even be that much. Is it easier and more foolproof to just file and pay the taxes?
Lwiddis
Explorer II
Aug 20, 2019
Engage a good E.A.
accsys
Explorer
Aug 20, 2019
You may want to start your research at the IRS.
midnightsadie
Explorer II
Aug 20, 2019
is there paper work when you cross the border,over,an back dated?

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Any American full-timers have experience w/ Tax Exclusion?

14 Replies

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