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Navigating US taxes while living a nomadic lifestyle can feel complicated.
If you’re a US citizen or Green Card holder, filing an annual tax return isn’t optional—it’s mandatory, no matter where you live or work. That’s because the United States relies on a citizen-based tax system, not a residential-based one.
Wherever your travels take you as a DevOps nomad, here are some key things you need to know to stay US tax compliant.
Use Online Services to Simplify Expat Tax Filing
Yes, filing taxes from abroad can feel overwhelming, but online tools can simplify the process.
For instance, Expatfile makes tax filing quick and easy for US expatriates. With its software, you can e-file your expat tax return and FBAR in as little as ten minutes.
Use the Right Forms
Filing an expat tax return as a DevOps professional requires reporting all worldwide income annually, regardless of where you reside.
You’ll need to use IRS Form 1040 along with any applicable forms like Form 2555 for exclusions or Form 1116 for credits.
Understand the Foreign Earned Income Exclusion (FEIE)
To stay tax compliant, you need to know that the Foreign Earned Income Exclusion (FEIE) lets eligible nomads exclude up to $130,000 (in 2025) of foreign-earned income from US taxes.
To qualify, you must meet either the:
- Physical Presence Test. Spend 330+ full days outside the US in a rolling year.
- Bona Fide Residence Test. Establish ties like a lease or visa by living abroad for a full calendar year.
Track Foreign Tax Credits
A tax credit directly reduces the taxes you owe, dollar for dollar. A foreign tax credit specifically offsets US taxes by the amount you’ve already paid to a foreign government on the same income. This prevents double taxation.
If you’re self-employed, check if a totalization agreement with your host country exempts you from dual Social Security contributions.
Report Foreign Bank Accounts
If you hold foreign bank accounts exceeding $10,000 combined at any point in a year, you must file an FBAR (Foreign Bank Account Report). This is submitted annually through FinCEN Form 114.
Failure to comply can lead to severe penalties.
Keep track of account balances and deadlines.
Additionally, certain assets may require filing IRS Form 8938 under FATCA rules.
Stay Aware of Filing Deadlines and Extensions
If you’re a US citizen living abroad during the regular tax deadline, you automatically get an extra two months to file and pay federal income taxes. For example, if your original due date is April 15, your extension moves it to June 15.
However, interest applies to unpaid taxes after the original deadline.
Keeping track of these dates helps avoid penalties or issues with late payments.
The Takeaway
For DevOps professionals working abroad, tax compliance doesn’t have to be overwhelming. With the right understanding of key requirements, you can handle your taxes efficiently and stay focused on your career and global adventures!
Smart planning ensures peace of mind, no matter where your work takes you.
