Now
that
Donald
Trump
has
been
elected
for
his
second
and
final
term
as
president,
some
people
are
thinking
about
leaving
the
country
during
his
imperial
reign.
Most
people
who
are
simply
unhappy
with
the
election
results
will
probably
change
their
minds
after
a
day
or
two.
While
Trump
is
known
for
his
bluster,
he
has
been
subject
to
all
kinds
of
investigations,
impeachments,
indictments,
and
even
assassination
attempts.
He
claims
that
he
has
been
unfairly
attacked.
In
some
cases,
he
may
be
correct.
So
some
of
his
critics
and
detractors
may
want
to
flee
because
they
genuinely
fear
government
reprisal
because
of
what
they
did
or
said.
Others
fear
that
the
likely
Republican-controlled
government
will
strip
civil
rights
and
incite
others
to
harass
or
persecute
marginalized
groups.
But
leaving
the
country
is
not
an
easy
endeavor,
especially
without
proper
planning.
First,
you
need
to
be
able
to
enter
the
foreign
country
legally.
Otherwise,
it
may
be
difficult
or
impossible
to
legally
work,
obtain
a
local
identification
card
or
driver’s
license,
have
local
bank
accounts,
or
even
find
a
place
to
live.
Also,
you
don’t
want
to
go
through
their
deportation
or
removal
procedures,
which
may
involve
jail
time.
Tourist
visas
generally
do
not
allow
holders
to
obtain
employment
in
the
country.
Instead,
an
employer
must
sponsor
the
applicant
for
an
employment
visa.
That
may
require
approval
from
the
government
before
it
is
issued.
Another
way
to
enter
and
work
in
a
country
legally
is
to
apply
for
asylum.
While
each
country
has
its
own
procedures
and
requirements
for
granting
asylum,
in
most
countries
an
applicant
must
show
that
he
or
she
will
face
torture
or
persecution
if
forced
to
return
to
their
home
country
due
to
their
race,
nationality,
membership
in
a
group,
or
their
political
opinions.
Generally
being
unhappy
with
election
outcomes
does
not
make
someone
eligible
for
asylum,
even
it
results
in
mental
health
problems.
For
those
who
can
work
remotely
full-time,
they
may
not
need
to
worry
about
the
above.
They
can
simply
stay
as
long
as
their
tourist
visa
allows
before
either
returning
home
or
moving
to
another
country.
Alternatively,
some
countries
are
starting
to
issue
digital
nomad
visas
which
generally
allow
foreigners
to
reside
in
the
country
while
working
remotely
for
an
employer
based
overseas.
To
qualify,
most
countries
require
payment
of
a
processing
fee,
and
proof
of
income.
In
some
cases,
after
a
certain
number
of
years,
visa
holders
can
apply
for
permanent
resident
status.
If
you
set
up
a
bank
account
in
a
foreign
country,
you
will
have
to
file
an
annual
report
known
as
the
Foreign
Bank
Account
Report
or
FBAR.
This
is
required
if
your
foreign
bank
account
at
any
time
during
the
year
had
more
than
$10,000.
The
FBAR
requires
you
to
disclose
the
highest
balance
in
the
account
during
a
calendar
year.
Once
you
figured
out
a
way
to
obtain
employment,
you
will
have
to
plan
for
taxes,
which
can
get
quite
complicated.
Most
countries,
just
like
the
United
States,
require
payment
of
income
taxes.
But
the
U.S.
imposes
income
tax
on
a
taxpayer’s
worldwide
income.
This
could
present
a
possible
double
tax
problem.
Fortunately,
U.S.
tax
law
has
provisions
to
minimize
or
eliminate
the
potential
double
tax.
The
first
is
the
foreign
earned-income
exclusion
which
excludes
a
certain
amount
of
overseas-earned
income
from
U.S.
income
taxes.
To
qualify,
the
taxpayer
has
to
have
lived
in
the
foreign
country
for
the
entire
tax
year
or
at
least
330
days
in
a
12-month
period.
However,
self-employed
taxpayers
must
pay
self-employment
tax
—
typically
around
15%
of
net
income.
For
2024,
the
maximum
exclusion
is
$126,500
per
person.
In
addition
to
the
foreign
earned-income
exclusion,
taxpayers
living
overseas
can
also
take
advantage
of
the
foreign
housing
deduction
or
exclusion.
Generally,
this
allows
taxpayers
to
exclude
a
certain
amount
of
housing
expenses
from
taxable
income
or
deduct
the
cost
of
housing
expenses
from
taxable
income.
To
qualify
the
above
income
exclusions
or
deductions,
the
taxpayer’s
“tax
home”
must
be
in
a
foreign
country
throughout
the
period
of
bona
fide
residence
or
physical
presence
abroad.
Also,
if
the
employment
assignment
in
the
foreign
country
is
temporary,
rather
than
for
an
indefinite
period,
the
taxpayer
will
not
qualify
for
the
foreign
income
exclusion
provisions.
If
the
overseas
taxpayer
either
exhausted
their
foreign
income
exclusion
or
does
not
qualify
for
the
exclusion,
the
taxpayer’s
U.S.
tax
bill
can
be
minimized
with
the
foreign
tax
credit.
This
generally
means
that
income
taxes
paid
to
a
foreign
country
can
be
used
as
a
dollar-for-dollar
credit
to
offset
the
taxpayer’s
U.S.
income
tax
bill.
This
is
particularly
useful
if
the
taxpayer
lives
in
a
country
whose
income
tax
rates
are
higher
than
the
U.S.
This
credit
is
not
available
for
a
foreign
country’s
local
income
taxes,
sales
taxes
or
value-added
taxes.
To
add
an
extra
layer
of
complexity,
there
may
be
a
tax
treaty
between
the
U.S.
and
a
foreign
country
which
imposes
its
own
rules
or
special
tax
rates.
One
last
thing
to
consider:
will
the
grass
be
greener
on
the
other
side?
Other
countries
do
not
seem
to
be
openly
inviting
U.S.
citizens
and
residents
to
immigrate.
In
fact,
it
may
be
the
opposite.
In
March
24,
2023,
Canada
and
the
U.S.
made
changes
to
its
Safe
Third
Country
Agreement.
Notably,
people
who
enter
Canada
from
the
U.S.
to
seek
asylum
will
be
returned
to
the
U.S.
unless
a
narrow
exception
applies.
Also,
Canada
has
recently
tightened
its
immigration
rules
because
a
large
influx
of
immigrants
is
believed
to
have
created
a
housing
shortage
and
strained
its
national
health
care
system.
Also,
U.S.
citizens
working
remotely
have
moved
to
Mexico
City
because
of
the
relatively
low
cost
of
living
and
its
vibrant
atmosphere.
But
this
has
angered
local
residents
because
it
has
resulted
in
locals
moving
out
due
to
higher
housing
costs.
While
many
people
are
upset
with
the
election
results
and
want
to
leave
the
country
out
of
frustration
or
fear,
it
is
only
feasible
for
a
small
number
to
do
so.
And
those
who
are
able
to
leave
may
find
that
their
new
neighbors
may
not
welcome
them
with
open
arms.
Steven
Chung
is
a
tax
attorney
in
Los
Angeles,
California.
He
helps
people
with
basic
tax
planning
and
resolve
tax
disputes.
He
is
also
sympathetic
to
people
with
large
student
loans.
He
can
be
reached
via
email
at
[email protected].
Or
you
can
connect
with
him
on
Twitter
(@stevenchung)
and
connect
with
him
on LinkedIn.