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How digital nomads are avoiding taxes on $126,500 in 2024, legally
U.S. Taxpayers who are location-independent are avoiding taxes big time. Here’s how.
Let’s discuss Form 2555 for Expats, Digital Nomads, and Full-Time Travelers. Here’s a tax benefit that can eliminate taxes on up to $126,500 this season. The Foreign Earned Income Exclusion is a tax benefit for U.S. citizens and resident aliens who live and work abroad or outside the United States.
It helps reduce your taxable income by excluding a portion of your foreign earnings from U.S. taxes. The exclusion amount for the 2025 tax season is $126,500 per individual. (X2 if you are married filing jointly) You can exclude the entire Foreign Earned Income Exclusion amount or any amount up to $126,500 on your 2025 tax return. Meaning you will NOT be taxed on this amount. And the really good news is, this amount increases each year.
I’m Sandy Ingram, aka C. Ingram, to the IRS. I am retired and traveling the world slowly, yet I have been registered with the Department of Treasury since the 1999/2000 tax season. I am now in Buenos Aires. Traveling the world slowly means I stay in one destination for 30 to 90 days.
I have over 10,000 tax students in different tax classes on Udemy. Having taught thousands of small business owners how to lower their taxes legally year after year…
