Navigating taxes and visas in Austin: What you need to know

For digital nomads, certainly your knowledge about taxes and visas must be a part of your arsenal. Read on below to know more about the specific requirements in the United States.

Let’s keep this simple:

Taxes

So, if you are a US resident, take note of the following:

• Once you earn over a certain amount, you would have to file a federal income tax return with the Internal Revenue Service (IRS).
• You do not need to file a state income tax return since Texas is one of the nine states that do not have this kind of tax.
• If you are a freelancer or business owner, you may be subjected to self-employment taxes which include Social Security and Medicare taxes.

If you are a non-US resident, here are some considerations:

• Your tax residency status is based on the tax laws of your home country.
• Find out if your country has an existing tax treaty with the US to ensure that you would not be paying double taxes.
  

The best thing to do is to touch base with a tax professional who has a proven experience in international tax laws and secure advice regarding your specific case so you can guarantee compliance.

Work visa/Permits

Currently, the US does not issue a dedicated visa to digital nomads but there are several visa options for foreigners. As for the residents of Canada and Bermuda, they are not required to get a visa or visa waiver to be allowed entry to the country.

Digital nomads may avail of the following types of visas:

• B-2 Tourist Visa – with this type of visa, you cannot work for any US-based jobs, and you can only stay for a maximum of 6 months.
• Visa Waiver Program – if your country of origin is included in the 40 countries under this program, you can enter the US with no visa for 90 days.

You do not want to get your visa revoked and therefore be compelled to leave the country, so here are some reminders to avoid that from happening:

• Have a thorough understanding of the terms and conditions of your visa and do not violate them. Do not engage in activities that are not allowed.
• Stay away from criminal activities, including offenses related to drugs, fraud, or other serious crimes.
• Do not stay longer than the authorized period of stay indicated on your visa.
• Do not work without proper authorization.
• Be sure not to violate immigration laws, such as providing false information or documents, engaging in visa fraud, or misrepresenting your intentions.

Remember, enjoying Austin can be hassle-free as long as you are well-equipped with the proper documents and permits—then you can start making Austin your very own digital nomad hub.