US Tax Filing for Digital Nomads
Working from Bali this month and Lisbon next doesn't exempt you from US taxes — but it does open up powerful exclusions. As a digital nomad with US citizenship or a green card, you likely qualify for the Foreign Earned Income Exclusion via the Physical Presence Test, one of the most valuable tools available for location-independent workers. We handle the complexity so you can focus on your work.
Get started with your filingWho this is for
- ✓ US citizens or green card holders working remotely without a fixed home base
- ✓ Freelancers and contractors with clients in multiple countries
- ✓ Self-employed workers using platforms like Upwork, Fiverr, or Toptal
- ✓ Nomads spending time across multiple countries each year
- ✓ Those with income in multiple currencies who need US reporting
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
- 1 Form 1040 (US Individual Income Tax Return)
- 2 Schedule C — self-employment income and business expenses
- 3 Form 2555 — Foreign Earned Income Exclusion (Physical Presence Test common for nomads)
- 4 Schedule SE — Self-Employment Tax (applies even with FEIE)
- 5 FinCEN Form 114 (FBAR) — for any foreign accounts over $10,000 aggregate
- 6 Form 8938 — FATCA reporting if foreign financial assets exceed thresholds
Documents usually needed
- 📄 Records of all income received (invoices, 1099s, platform payment summaries)
- 📄 Travel records showing dates in each country (passport stamps helpful)
- 📄 Bank statements for all accounts, including foreign accounts
- 📄 Records of business expenses (software, equipment, coworking, etc.)
- 📄 Prior year US tax return
- 📄 Social Security number or ITIN
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
Answer our questionnaire about your travel pattern, income sources, and residency
Upload income records and expense documentation to your secure dashboard
Our AI determines your FEIE eligibility, calculates self-employment tax, and identifies all deductions
A licensed CPA verifies the Physical Presence Test qualification and reviews your return before e-filing
When human review matters
- ⓘ The Physical Presence Test requires exactly 330 full days outside the US — travel records are reviewed carefully
- ⓘ Self-employment tax (15.3%) applies even when FEIE eliminates income tax — this surprises many nomads
- ⓘ Multi-currency income requires IRS-approved exchange rate conversions, handled automatically in our system
[INSERT: customer testimonial, e.g. "freelance UX designer in Chiang Mai, Thailand, saved money and stress using Nomadic.Tax"]
- freelance UX designer, Chiang Mai, Thailand
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓ Everything in Standard
- ✓ Schedule C & SE for self-employment
- ✓ Multiple income sources and currencies
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
Frequently asked questions about US Tax Filing for Digital Nomads
Can I claim FEIE as a digital nomad?
Probably yes, if you're a US citizen or green card holder and spend 330 full days outside the US in any 12-month period, you pass the Physical Presence Test. True nomads who are consistently abroad typically qualify. We'll verify your travel record as part of the filing.
Do I still pay self-employment tax even if I exclude income via FEIE?
Yes. FEIE reduces your income tax, but self-employment tax (15.3% on net profit) is not eliminated by FEIE. This is one of the most common surprises for nomad freelancers. Structuring through an entity like an S-Corp can reduce SE tax exposure.
I earn in USD, EUR, and GBP — how does this work?
All income must be reported in USD. We convert using IRS-approved annual average exchange rates, account for payment timing, and handle multi-currency income automatically as part of the filing process.
What if I split time between the US and abroad?
You need at least 330 full days outside the US in any 12-month period (not necessarily a calendar year) to qualify via the Physical Presence Test. Days spent in the US are excluded from the count. If you're close to the threshold, we'll model the optimal 12-month period for your situation.