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Critical U.S. Federal and State Tax Considerations for Digital Nomads: Tax Residency, Local Source Income, Reporting

Navigating Residential, Citizenship-Based, and Territorial Tax Systems; Filing Requirements, Tax Planning, Pitfalls to Avoid

Recording of a 90-minute premium CLE/CPE video webinar with Q&A

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Conducted on Thursday, April 11, 2024

Recorded event now available

or call 1-800-926-7926

This CLE/CPE webinar will provide tax professionals guidance on key U.S. federal and state tax considerations for digital nomads. The panel will discuss tax residency and its implications for digital nomads, tax obligations and filing requirements, application of tax treaties and minimizing double taxation, and tax planning strategies and utilizing exclusions and credits.

Description

Advising taxpayers on issues relating to being a digital nomad has become more prevalent as taxpayer's employment or business operations can be done in any jurisdiction within the U.S. or abroad. Tax professionals must navigate various federal and state tax residency rules, IRS examination guidance, and state regulations to implement effective tax planning strategies for these taxpayers.

A digital nomad refers to those who leverage technology to work remotely and often choose to live in different countries for short timeframes which presents unique tax challenges. These taxpayers must understand tax regulations from their home jurisdictions as well as those where they temporarily reside and implement tax planning techniques to minimize adverse tax consequences.

Federal tax residency rules applicable to individuals or businesses are relatively straightforward but can be burdensome to evaluate depending on the facts and circumstances. Tax treaties seek to eliminate or reduce double income taxation, and benefits are available to digital nomads who are nonresident aliens and U.S. citizens living abroad under some conditions. Due to the critical nature of residency for tax purposes, digital nomads must understand residency rules and applicable tax treaties that will determine if they are subject to taxation, the necessary forms to file, and if they qualify for any exemptions and credits.

Listen as our panel discusses key components of federal and state residency rules, determining tax liabilities of individuals and businesses, challenges for digital nomads, the applicability of income tax treaties, allocating income between jurisdictions, and utilizing exclusions and credits.

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Outline

  1. U.S. tax rules impacting digital nomads
  2. Residency and tax consequences
  3. Utilizing tax treaties, exclusions, and credits
  4. Tax planning strategies and best practices

Benefits

The panel will discuss these and other key issues:

  • Key areas of focus for determining tax liabilities of individuals who are digital nomads
  • Purposes of income tax treaties and their applicability
  • Determining residency for tax purposes
  • Allocating income between jurisdictions
  • Navigating tax regulations of multiple jurisdictions for digital nomads
  • Current planning techniques and best practices for tax professionals

Faculty

Armitage, J. Clark
J. Clark Armitage
Member
Caplin & Drysdale

Mr. Armitage's core practice is advising multinational corporations on transfer pricing in all contexts, from...  |  Read More

Burmester, Kirsten
Kirsten Burmester
Member
Caplin & Drysdale

Ms. Burmester's practice focuses on international tax issues, including both planning and controversy work. She has...  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. CPE credit is not available on recordings. All formats include course handouts.

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