Being retired is a blessing. Central America is perfect for me, close to Texas and Louisiana and kids! But, in a warm LATINO Culture! Great video ! Can’t wait to land
NOTE: This is using IRS Form 2555 - Scott is talking about using Part III - Physical Presence Test. You can NOT use Part II - Bona Fide Residence Test because that applies to countries that the USA has a treaty: "Only U.S. citizens and resident aliens who are citizens or nationals of U.S. treaty countries can use this test. See instructions."
✨️As always, thank you for another informative video that much appreciated ~ Is that 30-35 total days for the entire year? So a border run wont reset the clock so to speak...? Just to be 100% clear ~ Thx~
So this is an AMERICAN requirement, for tax status with the IRS. It's a total "volume" of days allowed to be "not claimed by another jurisdiction" within a year. So yes, annually. And there is nothing on earth that can reset it. Border runs are for visa status for the country you are staying in, this is for the country you are "staying out of."
Hi Scott. Actually you are somewhat wrong about U.S. taxes. I am retired and have been a long time . When you only have social security benefits as an income AND the amount you receive falls below the poverty level for the U.S. there is absolutely no need to file with the IRS. They automatically know what you receive unless you tell them differently. I do know a great tax person and she says that there is no reason to file. I have checked with the IRS and they said the same thing. Thanks Earl
@@EarlEarl-wj9wg That's weird, I had several years where my income hit zero (literally) and while I didn't get in trouble for them, I was required to go back and file later when I hadn't filed at the time.
This video is very misleading. What Mr. Miller is obviously trying to explain is the Foreign EARNED Income Exclusion (FEIE). This is not a tax credit as suggested, but rather an exclusion from US income taxes on money EARNED outside the US, up to $120,000 ($126,500 for 2024). Mr. Miller is correct that to qualify for this EXCLUSION one must reside outside the US a minimum of 330 out of 365 days. Mr. Miller fails to distinguish between EARNED income and UNEARNED income. UNEARNED income includes items such as Social Security, pensions, rents. royalties, interest and dividends. US citizens must report UNEARNED income on their US income tax return, and pay taxes accordingly, no matter if they never return to the US. And perhaps Mr. Miller does not realize that those expats over age 65 are exempt from participating in Medicare, provided they are participating in an approved healthcare plan in the country of residence, and provided they stay outside the US a minimum of 330 out of 365 days. Finally, as a former Wall Street executive, Mr. Miller should know that a US citizen pays a 15% tax on income for all foreign investments. But in fairness the foreign tax paid can become a tax credit (not deduction) on a person's US income tax return.
income tax has a break. Other things do not and they don't apply as they are not abroad. I should do a video on this... BUT YOUR INCOME when you are abroad is... abroad. But a fund, investment or capital gain is happening in the US, no matter where you as the "investor" exist. So even if they weren't taxed when they happen abroad, they aren't happening abroad unlike your income tax. Weird way to think about it, but it's what is actually happening. The taxes and "work" happen at different times and places between the two things and so while the tax law might be uniform, it is two very different scenarios.
@ScottAlanMillerVlog Scott, this should be a good topic to cover on a video. I'm sure that there are several individuals with the same questions. There are other topics to explore, such as realstate income and capital gains on the US and outside the US.
All unearned income such as pensions, rent, royalties, dividends, interest and capital gains is taxable as UNEARNED income, no matter what place or length of residence.
now do you pay taxes to the government of Nicaragua whats so ever? for living there even thoe you have a income from USA. Also I know you also get a visa for 90 days in Nicaragua and you have to fly back to USA to reset or it can be any country to reset the visa? These could be dumb questions but wanted to see your insight. Thanks
Visa is 90 days INITIALLY but you extend to 180. You only need to do two border runs per year, not four. It can be to any country with a hard border (e.g. it CAN'T be anyone in the CA4, those are soft borders, so not Guatemala, Honduras or El Salvador.) About 95% of all expats just reset in Costa Rica which is super close and easy. US, Mexico, Belize and Panama are all popular choices too.
Taxing your labor is unlawful. These rules are in violation of the International Covenant of Human Rights and International Covenant of Economic, Social, and Cultural Rights which people can use to charge their country with slavery.
