As a self-employed person or digital nomad, navigating the world of taxes can be a daunting task. Tax laws and regulations can vary from country to country, and it can be challenging to keep up with them.
With the filing deadline approaching in the US and the new tax year just beginning in the UK (don’t forget to raise your rates in line with inflation!), we wanted to provide five tips to help you navigate the complex world of self-employed taxes.
We also have some helpful guides to help you get started:
Understand the tax laws in your home country
This one is essential, you'll need to know what taxes you're required to pay and when they are due. If you're unsure about the tax laws in your home country, consider consulting with a tax professional.Keep accurate records
This is crucial when it comes to taxes. Keep track of all your business expenses, such as travel expenses, office supplies, and equipment. This will help you maximize your deductions and ensure you're paying the correct taxes.Understand the tax laws in the countries you visit
If you're a digital nomad traveling to different countries — especially if you are spending significant time there — it's important to understand the tax laws in each country you visit. You may be required to pay taxes in the country where you conduct business, even if you're not a resident.Take advantage of tax deductions
As a self-employed person or digital nomad, there are many tax deductions that you may be eligible for. These can include expenses related to your home office, travel expenses, courses, and equipment. Make sure to keep accurate records of your expenses and take advantage of these deductions to minimize your tax liability.Consider hiring a tax professional or use tax software
If taxes are not your area of expertise, consider hiring a tax professional. They can simplify the process and ensure you're paying the correct amount, they can also help you identify expenses you may not have considered.
Tax software can quickly input your income and expenses, calculate your tax liability, and file your taxes electronically. Popular tax software options in The US include TurboTax, H&R Block, and TaxAct.Navigating the world of taxes as a self-employed person or digital nomad can be challenging. However, by following some of these strategies you can minimize your tax liability and focus on growing your business.
Nomad Favourites
Check out our favourite books, podcasts, videos, and products just for nomads.
Keeper - Taxes Made Easy
Keeper not only helps with the confusing process of US taxes it also helps take advantage of tax and deductable opportunities. Every year, around 40 million Americans overpay their taxes by an average of $1,249.
Their intuitive app combines the intelligence of a good accountant with the scale and quality assurance of software. Initially it started with tax deductible business expenses for gig workers, but today it uncovers hundreds of other credits and deductions typically only found by an accountant.
The Money Mondays Podcast
As digital nomads and freelancers, the more we know about money, the better our chance for success. The Money Mondays podcast, hosted by Dan Fleyshman, shares helpful information and realistic tips.
What to expect from The Money Mondays:
Money topics, including investments, lucrative businesses, and side hustles
Interviews with successful people, including celebrities, influencers, business owners, and athletes
Hour-long episodes drop every Monday
Don’t miss these other great podcasts for digital nomads and freelancers if you’ve been looking for something new and inspiring!
Get a Free Week of Skillshare
Most people have heard of Skillshare by now, it’s one of the best online platforms for learning about pretty much anything (including filing taxes!) from experts with one easy subscription. If you have been wondering whether to give it a go, this one-week free trial can provide the help you might need this tax season.
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