Category: Digital Nomad Life

This post was written in collaboration with Taxes For Expats. We received partial tax preparation services in exchange for creating a review. As always, this review reflects our honest opinion on the service. 

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Travel bloggers and other remote workers tend to be risk takers. We’re ready to work hard and take on any challenge that life throws at us. But there’s one word that has us all running and hiding under our covers, TAXES. If you’re anything like me, taxes have been one of those scary parts of adulting that I can never quite get my head around.

Throw in confusing-as-hell rules for digital nomad taxes, less than perfect financial organization and a business/life partner from another country and it’s enough to make you wish you didn’t earn any money at all. But over the last couple of years our blog has become more and more successful (hooray!) and that means taxes are inevitable (boo!). Luckily, as the digital nomad trend grows, more companies are starting to address our unique needs. Taxes For Expats is one such company that’s working to make taxes easier for… well, expats!

 

 

US Digital Nomads and Taxes

US citizens are moving abroad at a growing rate, but the US also has one of the strictest tax residencies for their citizens. They’re not letting you get out of paying taxes just because you live in another country! This can make for some super confusing questions come tax season. And there are a lot of regulations and loopholes that standard tax professionals may not know about.

 

Working hard as a digital nomad? Don’t forget to take a break every once in a while, learn about the benefits of a digital detox!

 

Taxes for Expats focuses solely on working with US residents living abroad so they are 100% up on the changing lax laws for expats. They work with clients living in over 190 countries around the world. Their team of tax professionals know their stuff and can guide you through even the most confusing situations. We worked with Taxes For Expats on preparing our taxes for the 2017 financial year. Here’s what we thought about the experience.

 

 

Using Taxes For Expats

Before connecting you with your tax preparer, Taxes For Expats will ask you to fill out a tax questionnaire. This questionnaire will ask you all the standard stuff they’ll need to know to do your taxes for you, including your employment and income information, deductions and how long you spend in the US vs outside the US. The form is straightforward and easy to fill out online.

It can be a bit overwhelming to collect all that information, but I would recommend just filling it out to the best of your ability. If you have any questions, you can schedule a 30 minute introduction call and they will connect with a customer service team member, but in my experience the tax preparer they connect you with after the questionnaire will be much more knowledgeable than the person on the call. Chances are you’ll be going back and forth on email with your preparer with questions anyway, so I would recommend filling out the questionnaire to the best of your ability so you can get the process started.

After the questionnaire, your tax professional will look over your answers and assess what services you’ll need. They will then send you an electronic engagement letter with a list of recommended services and prices for each. They won’t start preparing your taxes until you’ve approved the total cost. This ensures you’re comfortable with how much you’ll be paying and there’s no surprises in the end. They have a list of their prices here so you can review before starting your questionnaire.

After you’ve approved the costs, you’ll sign the engagement letter and they’ll start preparing your tax return. The standard turn around time is 15 business days, so if you’re like us and wait until the last minute- keep this in mind! They do offer rushed services, but we found the whole process to be very speedy.

 

 

Taxes for Expats Review

From the questionnaire to the tax preparation, everything is done online, which I know will appeal to the digital nomads out there. If you’re old school and feel a little unsure about giving up all your info without even a phone call, rest assured that you’re in good hands with Taxes For Expats. They have a team of professionals that are all CPAs or enrolled agents and their work is double checked by at least two other team members. After they finish your tax return they e-file it for you (in some cases the IRS doesn’t accept e-filing, in which case you’ll have to mail it in.)

The whole process went smoothly for us and having them file our return was a huge weight off our shoulders. Our only frustration was that we were looking for a bit more guidance in tax strategies for our specific situation. The service is really a straightforward tax preparation service, rather than a tax advice service. Perhaps that’s due to the nature of being online vs in person.

 

 

Because our situation is so complicated, next year we’ll most likely find someone we can sit down with and really gain advice on the best way to approach our taxes. Our tax preparer was quick in responding to our questions via email (and we had a lot of them!). I found the communication to be professional, but to be honest, at times a little short and lacking the warmth an in person tax professional might provide. But when it comes to taxes, I value expertise over friendliness and she definitely knew her stuff. Overall, using Taxes for Expats definitely made our tax preparation much easier. Everything was handled in a timely manner and we even ended up getting a refund!

If you feel confident in your basic level of tax knowledge and prefer to have everything done online and via email, Taxes for Expats is a great option. Overall, we would recommend Taxes for Expats for US citizens living abroad and looking for a tax preparer who is knowledgeable about the in and outs of this area of taxes.

Being in a relationship is an incredible experience, but with the territory comes some hard conversations. One of the least enjoyable, but most important conversations, is the money talk. Debt, savings, financial goals, all of these can be awkward to discuss, especially early on in a relationship. So when Intuit Turbo challenged us to break the taboo about money conversations by going on Facebook Live to share how we handle finances as a couple, we were a little hesitant.

You’re always taught as a child that it’s rude to talk about money in public. But that mentality just increases the shame and stigma surrounding financial health. It leaves most of us with questions about whether we’re making the right money moves or if we’re potentially putting ourselves in a worse financial situation. Opening up the conversation allows us to gain some insight into how we’re really doing.

 

 

Breaking the Money Talk Stigma… LIVE!

So while we weren’t ready to post our tax returns on Facebook for all to see, we were happy to pull back the curtain a tad to help reduce the stigma of talking about money openly. Before we reveal how it felt to go on Facebook live and answer questions like “how are you paying for your wedding,” we’ll give you a little background on ourselves.

 

Our Background

Jules and I have been together since 2012. Our relationship is anything but typical. We met while volunteering in Peru and began traveling full time together. Because of this, our first “real” money talk was pretty early on in our relationship. Because we were traveling together, we had to be open and honest about our savings and spending budget. We couldn’t have one of us ready to splurge on fancy hotels and meals, while the other was down for cooking rice and beans at a hostel. Luckily in those days we were both broke budget travelers, so we were on the same page for budget!

 

 

Although we had our own savings, we were spending a lot of our money on the same accommodation, meals and travel. Instead of keeping track of who was spending what, we decided to combine a portion of our money. We marked this milestone in the most adult way possible- we bought a coin purse shaped like a duck and each put in an equal amount of money. Whenever we bought something together it came out of the duck. This made spending much easier and took the guesswork out of who owed who. Plus it was fun carrying around a bright yellow duck.

Eventually we started the blog together, which became our full time business. So not only were we traveling as a couple full time, but we were also working together full time. In a way, this made our finances easier because we opened a joint bank account and put all of our shared income in it. We each still have individual savings, but most of our bills come from our joint account. Of course, most couples don’t work together so this wouldn’t make sense for everyone. But since we both work full time on our business, we don’t stress about who is contributing more money, it’s all equal.

 

 

Now that we’re engaged it makes even more sense that our finances are combined. While we love traveling, we’re starting to plan to be more settled in the future. Eventually we’d like to own a house and start a family. Of course travel will always be a priority for us, so we’ll have to keep money aside to continue that passion.

 

The Facebook Live

During the Facebook Live we sat down with financial expert Farnoosh Torabi and Jamie Belsky from Intuit Turbo. We started the chat with some rapid fire questions and Farnoosh did not hold back! We found out that Jules and I both think the other is the bigger spender (him on big items, me on small impulse buys). I had to admit that I’m more likely to be late on a bill! Jules had to admit to being tempted to buy each new drone that hits the market!

 

 

Then we got into some deeper questions about how we approach our finances as a couple, how we split expenses and our strategy for tackling debt and saving for the future. We’re not gonna lie, it was a bit nerve-wracking talking about our finances in front of a live audience. Personally, I’ve always felt intimidated by finances. Even now that we’re making a good living from our blog, the idea of saving for retirement or making investments has me wanting to stick my head in the sand. Thinking about finances just makes me wish I was a kid again. Why is adulting so confusing?!

But the thing is, if we don’t talk about this important things, they’ll continue to be scary concepts that we’ll never understand. When we open up the dialogue and aren’t afraid to ask questions, that’s when we can break down these fears and start to feel more confident about our finances. About 15 minutes into the chat, Jules and I started to feel more comfortable having our money talk and, dare I say, even had fun! Having access to a financial expert like Farnoosh was such a gift (seriously, this lady knows her stuff!).

 

 

Takeways from the Live

Farnoosh gave us some great tips and advice, including how important it is to have money that is “yours,” “mine” and “ours.” At the moment Jules and I pool almost all of our money together. Separating a bit each month for our individual personal spending would be a great way to regain some financial independence and eliminate any guilt for spending “our” money. Farnoosh also expanded on the importance of knowing our household income, which can be a bit of a confusing to figure out, especially if you have multiple income streams.

 

 

That’s where Turbo’s free app on income, credit score and debt to income comes in. This app allows you to collate all your financial information (household income, credit score and your debt to income ratio) in one place. You can upload your tax returns, as well as input any extra income manually (shout out to all those side hustlers out there!). Taking these three markers of financial health into account, the app then provides you with custom advice on any improvements. It’ll also provide insight into how you’re doing financially compared to other users like you. Because who doesn’t like some healthy competition?

Check out the Facebook live below!

The biggest takeaway for us was the importance of staying on top of your finances. Talking about money can lead to a lot of different emotions. But as a couple, if we’re not open and honest about our financial status, it can become an even greater source of shame and frustration. Farnoosh advises checking your finances everyday. This may seem excessive to some, but the more you familiarize yourself with your financial status with tools like the new Turbo app, the more confident you’ll be to make those important decisions!

Well, we did it! We survived our digital detox experience. Did we go the whole 14 days without connecting the Internet? Heck no! We’re not that strong willed. But we did manage to limit our Internet use and recognize how dependent we are on being online!

If you’re not sure what I’m talking about, here’s a little recap: Intel Security sent us on a digital detox vacation to test our Internet addiction. We chose a 2 week cruise across the Atlantic (you can read all about our pre-trip thoughts about unplugging from technology).

The Digital Detox Challenge

These were the conditions of the challenge:First week we go cold turkey. No Internet allowed! We each got to choose one non-Wi-Fi gadget however. I chose my Kindle and Jules used his iPhone for music.

Second week we get online for only 1 hour a day between us to check work and school.

The first person to crack within the first week will owe the other person the amount of time they spent online in foot rubs.

Doesn’t seem so difficult, does it? We thought a cruise would be a perfect to get away from the computers. There would be plenty of entertainment onboard and little Internet. Perfect combination right?

…..Wrong! Being a digital nomad, unplugging from technology and taking a digital detox is freaking hard! We had a lot of downtime on the cruise and even though it was a nice opportunity to disconnect from the Internet, we still felt that need to be connected. We can’t feel too bad though because it turns out disconnecting from technology while on vacation is difficult for most people.

According to a recent study done by Intel Security, 57% of people aren’t willing to leave their smartphone at home while on vacation. And 68% of Americans admit to checking their work and personal email once a day, every day during their vacation. So in reality, staying offline for our first week was actually ambitious!

The Digital Detox Outcome

So how did we fare? Well here are some journal entries from experience to give you an idea:

Day 1: We got this. As soon as we arrive aboard the ship we toss our bags into our cabin and get drinks by the pool. We spend the afternoon lounging by the pool without even the slightest urge to connect online. Vacation has officially started!

Day 4: Starting to get a bit restless, but still under control. Without anywhere to go other than the pool and the restaurants, we are a bit bored. We’re getting our gadget fix by reading and listening to music.

Day 6: Jules cracked and checked his email! To be fair he was only online for about 20 minutes, but it still breaks the conditions of our agreement. 20 minutes online means 20 minutes of foot rubs for me!

Day 7: Finally! We made it through the first week. We both feverishly check our work and school emails (okay, and one sneaky Facebook check!) but manage to stick below the hour limit.

Day 9: We’re going a little stir crazy. This is only the second cruise we’ve been on and by far the longest. While we’ve made some great friends on the ship, we miss the feeling of being connected to friends back home with just the click of a button.

Day 12: We’re not sure if it’s seasickness, cabin fever or digital withdrawals but we’re at the end of our rope. We’ve managed to stick to our 1 hour/ day limit, but all other rules have gone out the window. Facebook, Instagram, Pinterest, it’s all fair game!

Day 14: And we’re DONE. I don’t think I’ve ever been so happy to see land. Especially because it means our digital detox is OVER. We proceed to spend the rest of the day glued to our computers.

Post-Trip Reflections

We never expected a digital detox to be easy. After all, we work, study and socialize online. Being a travel blogger means not only creating content on our computers, but also keeping our followers updated through social media during our travels. It’s not often that we have to disconnect from social media or our devices for more than a couple hours. It’s not an ideal situation, but it’s the nature of our work and it allows us to live the lifestyle we love.

Lately, however, we’ve gotten into a habit of going online just for the sake of it. We’ll do a little check on our Instagram followers, or send a quick message on Facebook. We’ve even gotten into the terrible habit of being on our phones during meals (so bad!).

This digital detox challenge was a learning experience to see just how far our addiction runs. I can tell you, it wasn’t pretty. There were times during the cruise when I reached into my purse to grab my phone when I remembered the detox challenge. Having that simple hurdle was a consistent reminder every time I wanted to go online. It made me evaluate whether I really need to log on to do something important or whether I was just going on for the sake of it.

It feels so automatic these days to reach for your phone when you have a spare second. Whether it’s waiting in line at the grocery store or before you go to bed at night. These little instances may not seem like much but when you’re presented with the challenge of not being able to get online, it’s a reminder just how much you reach for your phone or computer. We forget that we’re reliant on Internet even for simple things like searching for restaurants or using Google to settle a debate between friends (was Brendan Frasier really in that movie?).

And while those instances may seem harmless, they just add up to hours when you’re sucked into your phone or computer. Hours where you’re taken away from real life, thinking about somewhere or something else and not enjoying the moment.

Benefits of a Digital Detox

While our digital detox cruise was challenging, it also provided us with some incredible memories. Away from the seemingly “phone-addicted” environment of backpacker hostels these days, we were able to really connect with other travelers on the ship. Without having the distraction of the Internet we had to make our own fun, not unlike during the days of our childhood. We played games, chatted about our travels and enjoyed cocktails by the pool without anyone stressing about whether it was being documented on Snapchat. We ate meals without waiting till our food went cold because everyone wanted to take photos for Instagram.

Jules and I had more time for ourselves as well. We normally work long days, punctuated by big days of travel and sightseeing. We rarely have down time, but when we do we usually veg out on our phones, scrolling through the same boring feeds. Getting away from all that meant having time to just hang out. We enjoyed taking walks around the ship and chatting about conversations not related to work.

Overall, this experience came at a perfect time. We’re currently expanding our online businesses to include more than just the blog. Which means more tasks to do behind the computer. Our unplugged vacation was a great reminder that just because we work online doesn’t mean we need to be online all the time. We need breaks away from technology to enjoy real life.

Tips For Using Your Tech On Vacation

If you feel the temptation for going online during your trip (hey, we don’t blame you!), Intel Security shares some great security tips for keeping all your tech safe, with or without a vacation.

Back up your computer. Seriously. It took me years to get this through my head. I was lucky not to have my computer stolen or broken, but if it had I would have lost everything! Whether you’re accessing your information away from your home network or going to go long stints without your technology, it’s better to have the peace of mind that all your important information is safe!

You should always have a decent password lock on your phone. You can even add an extra layer of security with the new iPhones that allow you to use a fingerprint authentication.

Use a phone-locating app. I can’t tell you how many phones I’ve lost over the years. Having an app like “find my phone” is a must-have, especially while traveling where language and other barriers can make phone recovery very difficult.

Thanks to Intel Security for giving this opportunity to unplug from our digital world, if only for a short period. As always, any opinions expressed in this article are ours. We’d never bring you something we didn’t truly believe in.

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For Jules and I, our entire life is online. Running a travel blog means we’re glued to our computers, often for marathon work sessions. We’re on social media more than we’d like to admit to keep our followers up to date on our travels. We’re both studying remote courses for our Masters, which means reading and discussing with our classmates online. And then there’s normal life stuff like keeping in touch with our family and friends from abroad. That’s a lot of digital time.

Don’t get me wrong, we wouldn’t give up this life for anything. As annoying as it is to make sure we grab a quick Snapchat or Instagram shot whenever we go sightseeing, it beats working a 9 to 5 back home. Still, it’s a nice break for us to disconnect from the Internet even for a few hours. So when Intel Security contacted us to have a digital detox vacation we jumped at the chance to get away from all things tech.

According to a recent survey conducted by Intel Security, 55% of travelers who wanted to disconnect from their devices while on vacation were unsuccessful. Yikes. We’re going to guess that number will only continue to increase as every day more and more apps come out that connect us to the digital world.

Digital Detox Holiday

Luckily for our little digital detox experience we have the perfect excuse to go cold turkey on the gadgets. We’re about to embark on a 2 week cruise across the Atlantic from Colombia to Portugal. Wi-Fi is going to be limited (if not non-existent), so chances are we’ll be forced to shut off anyway.

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To have a little extra fun, Jules and I set up a little competition amongst ourselves- who would crack first? According to the survey men are slightly better at unplugging then females, with 57% unplugging on vacation compared to 44% of women, so looks like I’m already starting from a disadvantage.

Digital Detox Challenge Conditions

The first week of the cruise we’re going cold turkey. We’re each allowed to choose one gadget to use for non-Wi-Fi purposes: Jules has chosen his iPhone to play music and I’m choosing my Kindle for reading.

The second week of the cruise we’ll have to get online to check work emails and contribute to our class discussions, but we’re limiting ourselves to 1 hour a day between the two of us.

The first person of the two of us to crack and get online before the second week will owe the person the amount of time they spent online in foot rubs!

Thoughts Going Into The Trip

We’re not going to lie, this isn’t going to be easy. While it will be refreshing to have a break from updating social media and checking email, I think a digital detox will be surprisingly difficult. I’ll be the first to admit how addicted we are to our devices.

Even when we aren’t updating for work, I find myself mindlessly checking my Facebook or email throughout the day. I envy my former travel self who wandered through Central America without so much as an iPhone in my pocket. Getting online was the last thing on my mind when there were so many adventures to be had.

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This was also back in 2011 when hostel Wi-Fi was much less common than it is these days. Now when you enter a hostel common room there is much less chatter between new friends and much more heads faced down completely absorbed by phones.

And I won’t say that we don’t contribute to the problem. It’s difficult though because our work dictates that we be online every day. Sometimes when I see wandering eyes notice how enraptured we are on Facebook I just want to scream “it’s for work!” but I don’t think anyone would believe me.

The Difficulties of Disconnecting from Technology

For travelers across the board it’s becoming more and more difficult to disconnect. Nowadays there are so many travel tools that come in the form of apps and websites. Intel Security has some useful digital detox tips for disconnecting while on vacation, including using offline maps.

For millennials, especially those who have grown up using Google Maps (or the OG of online maps- MapQuest!), we’re completely dependent on having our phone direct us where to go. Thank goodness there are offline maps for us directionally-challenged travelers. Did you know that Google Maps can be also used offline if you pre-load the area you’re traveling in?

There are also offline map apps like Maps.Me where you can actually type in your destination and it will create a route for you, without having to be online! It’s not exactly complete digital detox, but staying off the Internet will reduce the temptation to mindlessly check your Facebook (again).

For us bloggers, whose lives revolve around and our often very publicly displayed in this online space, it’s especially important to remember to log off. This digital detox challenge will be the perfect experience to test our addiction and remind ourselves that we can live without the Internet.

On a professional level we’ll have to write and schedule some of our social media posts to go up while we’re on the cruise, so it will also be a good exercise in planning ahead. Hopefully we’ll gain some insight on batch-creating social media and blog posts that we can schedule to go live and use these skills for future digital detox trips. When your life revolves around being online it’s so important to plan ahead.

Remembering to Enjoy the Vacation

Above all I look forward to having this time as a real vacation. Often when we come back home after a year of traveling people ask us “how was your vacation?” Okay, we get it. From the outside it probably looks like we’re on vacay 100% of the time. Our social media shows us sipping cocktails on a beach in the Philippines or trekking through a tropical jungle. It doesn’t show our hours working in hostel rooms or searching for quiet cafes with decent Wi-Fi, even though that’s what our days are usually like. So having a real, unplugged vacation is going to be a godsend.

It’s funny that travelers take vacations to get away from all the drama and chaos of life at home, but then choose to bring all that with them when they connect online. We have to intentionally force ourselves to disconnect from that world and enjoy the moment. Hopefully this challenge will be a start of a new online/offline balance that we can introduce into our work and lives. We can’t wait to see how it goes!

Thanks to Intel Security for giving this opportunity to unplug from our digital world, if only for a short period. As always, any opinions expressed in this article are ours. We’d never bring you something we didn’t truly believe in.

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