Perpetual Travel Questions

[Surfs_Up]

I have a few questions regarding Perpetual travel and living overseas:

1) How do you deal with paying taxes while living overseas? Can you get 1099s sent to say Thailand and file online?

2) Any suggestions on how to deal with any mail....beyond trying to get all posiible mail electronically?

3) Do you have your permanent residence in a state with no state income tax to avoid this cost?

Surf

 

[Surfs_Up]

Billy or Lancelot....any advice on the above?

Thanks,

Surf

 

[Billy]

Surf,
1) We use a US based CPA and he takes care of our taxes. Yes, we file and pay as needed.

2) We have our mail held for us, and usually return to a huge box of junk. 99.999% is done electronically. Occasionally there is something in the box that needs our attention, so we deal with it at that time.

3) State residency is a personal decision and if you use a CPA, they can take care of those issues.

Good luck, I hope this helps.
Billy
Website: www.geocities.com/ba264

 

[Brit]

I am not a CPA or a lawyer but this is what I have found out during my travels.

If you stay abroad for a year or more you can make up to $87,225 in Foreign income and housing allowance tax free to the USA.  This is from Publication 514 on the IRS web site( form 1116.) but I think you are still liable for Social Security payments.

Remember as a US citizen you are taxed on your World wide income no matter where you live.

If you want,  find a CPA or Tax preparer that is in a no tax state and possibly use their address for your mail.  If not use a private mail box that will forward your mail for a fee. This saves the paperwork for state tax's. I also suggest you move your driving license to the same state, this help prove you have moved to that state so that your previous state does not come after you later for state tax's. Find a tax consultant that has international experience as international tax rules do get complicated. Some PT actually still have the USA as their domicile and live mostly abroad but still file a regular tax return in the USA. If most of you income come from US sources then that may be a better bet.

Keep your US investment with your US mailing address, otherwise it opens up all sorts of reporting government paperwork.

You can pay most bill's now days over the Internet. I found that when abroad it is cheaper to draw money from an ATM.  The exchange rate are better and I was not charged a transaction fee. If you open a bank account abroad you have to report it on you tax return and file a form with the US treasury department.

There are a lot of books on this, try searching the web for PT, Perpetual Traveler etc. it will bring up a lot of information. Be careful as some of the information is bogus or illegal. The best information is from expat's that are in the location you are going too.

Good luck on you travels,

Brit.

 

[Surfs_Up]

Billy and Brit,
Thanks for the advice !

Surf

 

[Lancelot]

Hey Surf!

Taxes-I've been filing my taxes online, using "online" software. The IRS usually has a list of tax software providers that offer "free" online filing (free if your return meets certain requirements...)

Mail-The most critical thing is getting replacement ATM and credit cards from the USA. Have a trusted family memeber, atty or CPA forward the critical stuff. By the way, the ATM is th eway to go to access your cash abroad. I've used my ATM in Africa, Asia, Europe... Never had a problem...

State residence-Billy and Brit have good advice... I am "winging it" on that issue.... So far, so good...

All the best!

Lance

PS-You said you lived in Indonesia for $400 US per month? Can you message me with more info? Thanks Surf!

 

[Surfs_Up]

Hi Lancelot,
Thanks for the info. Yes, I lived on $400 per month in Indonesia in 1999. But, where I traveled are not the kind of places you would want to take your kids on vacation (malaria) or for the risk adverse. Indodesia has over 17,000 islands and the worlds largest muslim population....and amazing waves !
I was primarily on two small islands (Nias and Bawa) off Sumatra and on Sumbawa (Lakey Peak). Getting to Nias and Bawa is long and difficult......you hope your boat doesn't sink.....boats are overloaded and do sink on occasion. Once your there, you'll surf some of the best waves in the world......but, long pants and long shirts are a good idea at night to reduce the risk of malaria. Bring a good mosquito net. Risks....yes, but an incredible adventure. I have found in my travels that the most memorable days are the ones that go really (really) bad.....as long as you live to tell about it

Surf

 

[John Galt]

Hello Surf! I disagree! Although my really really bad days traveling provide some great stories, I would gladly have skipped them. I have enough stories to last
a lifetime, and certainly the troubles make them interesting. Still, at this stage of my life I would prefer
to be described as "resting comfortably".

John Galt

 

[dex]

It is interesting that it takes alot of boring times while traveling to come up with the interesting ones.

Then again, it beats working.

6+ months and counting

 

[John Galt]

Okay okay.........the clamor is deafening, so just one travel story

I am on AMTRAK heading west waiting for my dinner
reservation to be called. At the stop in Albuquerque
comes a knock on my sleeper door. It's a cop!
Wants to see my ID and wants to know my business.
As soon as he is convinced I am not really Ted Bundy
I inquire as to why he is there. He says that people
are moving drugs back and forth across the country
on AMTRAK (imagine that!). "They" noticed I had a Texas
driver's license, my truck had Michigan plates and that
I left it parked at a depot in Kansas, headed for San
Bernadino, so.................Then he says "Would it be all
right if I looked around the room?" I said
"Absolutely not!" I half expected a DEA posse when I
got to California

JOhn Galt

 

[AltaRed]

I agree with the comments on using ATM overseas to get cash. The very best exchange rates. One tip: most overseas ATM's require use of a 4 digit PIN (at least in Europe). Be sure to make that change before you go. Lastly, inform your bank of your intentions so that they don't get worried about all the withdrawals from overseas ATM's.