Worldschooling, Family Travel, and Taxes

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If only full-time travel allowed us to take a break from paying taxes, too. Nope! If you are earning any type of income while worldschooling, you still have tax obligations. Here are some considerations for US citizens traveling full-time:

 

  • You are responsible for paying federal taxes each year, no matter where you are in the world and how your income is earned; taxes are based on worldwide income.
  • This is true even if you don’t live in a fixed place and are traveling full-time.
  • Tax and filing rules are usually the same, whether you are physically in the US or abroad.
  • State taxes are more complicated, and you are generally required to pay state taxes for your state of residence. Many states require you to file a nonresident income tax return, even if you are overseas or traveling full-time; be sure to check the rules for your home state.
  • If you plan to reside in a single other country for most of your Wonder Year, be sure to research the Foreign Earned Income Exclusion law, primarily aimed at US expats.
  • If you are staying in the US and traveling to multiple states, review the laws for each state where you earned income, as requirements may vary.
  • If you have a family business, own an LLC, or operate under another framework while working on the road, keep track of your expenses; some may be tax deductible.
  • Some expenses associated with volunteer work, such as food and lodging costs, may be deductible as well; keep track and consult your tax advisor.

 

Given the unique circumstances of each family’s worldschooling travels, we recommend looking closely at the potential tax consequences of your trip or consulting with a tax accountant before you go to review your needs and plans. Getting clear on the details up front can help you avoid surprises and stay focused on the journey ahead.