this post was submitted on 29 Nov 2023
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Digital Nomads
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I’m a digital nomad making $240k for a US company.
They key is I just don’t tell them and I have to be willing to get caught and get fired. (I have a dedicated VPN at my moms house in the US and a travel router, plus a burner phone spoofing my location with an Authenticator app just in case- but I’ve only ever needed texts for 2FA)
How do you deal with the tax fraud though. Willing to get fired is one thing, the tax fraud is the real kicker
How is it tax fraud? If you’re paying US federal/state taxes as if you’re in the US, I don’t think the IRS is going to come after you. In the country for which you’re staying in, sure they may not really like that you’re working on a tourist visa but for them to find out and pursue you for it I think is unlikely.
One part is definitely the host country. Some countries are stricter about it than others.
The other part is state laws usually. E.g your employer is in California where you used to live but you put your family address in Washington because you don’t have a physical address in CA anymore. CA can come after you for lying about your address to try to avoid taxation. Your visitor visas aren’t proof that you don’t live in California. You’ve just committed tax fraud.
The state thing is not a big deal if you move to another state and wrap up your relationship with the high tax state first. If you go abroad directly, then like you said it might be more difficult for you to prove that you moved to the low tax state.
I’m doing something similar and I have family in a zero income tax state which I lived in briefly before going abroad.