REMOTE WORKERS & NOMADS
Work from anywhere, without becoming a resident of everywhere
To track how many days you spend in each country automatically: SpyglassBeacon detects which state or country you're in from your phone's location in the background, no trip entry required, and keeps a running per-country (and per-state) day total that updates itself as you travel.
The freedom to work from anywhere comes with a quiet catch: spend enough days somewhere and its tax authority can treat you as a resident. The thresholds are just day counts, and they are easy to trip without noticing.
Inside the US: the state 183-day rule
Most income-tax states can tax you as a statutory resident if you keep a place to live there and spend more than 183 days in the state, regardless of where you are "from." A remote worker who camps out in a high-tax state for most of the year can become taxable there on their full income. The count is often unforgiving: New York, for example, counts any part of a day as a full day. See snowbirds and state movers for the full mechanics.
In Europe: the Schengen 90/180 limit
If you are a visa-exempt traveler, you may spend no more than 90 days in any rolling 180-day period across the Schengen area. Both entry and exit days count, and days across every Schengen country add up together. Overstaying is an immigration problem, not just a tax one, and the new EES border system now counts your days automatically. Check your Schengen days here, or let the app run the 90/180 window automatically.
Per-country residency: usually 183 days
Many countries treat you as a tax resident once you spend 183 days there in a year, though the exact rule and the definition of a "day" vary widely, and some use additional tests (a permanent home, center of vital interests, and so on). If you are spending serious time in one country, assume the 183-day line is live and get advice before you cross it.
How digital nomads pay taxes: step by step
The short answer: if you are a US citizen or green-card holder, you file a US federal return on your worldwide income every year no matter where you live, then use the Foreign Earned Income Exclusion or the Foreign Tax Credit to avoid being taxed twice. Here is the order it actually happens in:
- File a US return regardless of where you live. US taxation is citizenship-based, so Form 1040 is due even if you spent zero days in the US. Living abroad gets you an automatic extension to June 15 (interest still runs from April 15).
- Cut the double tax with FEIE or the Foreign Tax Credit. The Foreign Earned Income Exclusion (Form 2555) lets you exclude up to about $130,000 of earned income for 2025 (the cap is indexed up each year), but only if you pass the bona fide residence test or the 330-day physical presence test. The Foreign Tax Credit (Form 1116) instead gives a dollar-for-dollar credit for income tax you paid to another country. You choose based on how much foreign tax you actually pay (see the table below).
- Budget for self-employment tax separately. If you are a freelancer or run your own business, the 15.3% self-employment tax (Social Security and Medicare) is owed on your net earnings even when the FEIE wipes out your income tax. It only goes away if the US has a totalization agreement with the country you are paying into.
- Pay quarterly estimated tax. With no employer withholding, you send estimated payments (Form 1040-ES) four times a year if you expect to owe $1,000 or more, or you face an underpayment penalty.
- Report foreign accounts. If your foreign bank and brokerage accounts together top $10,000 at any point in the year, file an FBAR (FinCEN Form 114); larger balances may also require Form 8938 (FATCA).
- Don't forget your old state. A federal filing does not clear state tax. If you never abandoned domicile in a state like California or New York, it can still tax your worldwide income while you roam. See state residency rules.
| Foreign Earned Income Exclusion (Form 2555) | Foreign Tax Credit (Form 1116) | |
|---|---|---|
| What it does | Excludes earned income up to ~$130,000 (2025) from US tax. | Credits foreign income tax you paid against your US tax, dollar for dollar. |
| Best when | You live in a low- or no-income-tax country. | You live in a country whose tax rate is similar to or higher than the US. |
| Key gate | Bona fide residence or 330 foreign days in 12 months. | Foreign income tax actually paid or accrued. |
| Covers SE tax? | No, self-employment tax still applies. | No, and foreign income tax can't credit against US SE tax. |
You can even combine them (FEIE on the first slice of income, FTC on the rest), but not on the same dollars. The 330-day count is the piece most nomads get wrong, and it is a rolling 12-month window, not a calendar year.
How SpyglassBeacon helps
Beacon keeps a running, timestamped count of your days per state and per country automatically, and warns you before you approach a limit. Instead of guessing whether this month tipped you over a line, you know, and you have the record to prove it.
Frequently asked questions
Updated 2026-08-26
How do state taxes work if I work remotely from several states?
What is the Schengen 90/180 rule?
How do I track days across countries and states at once?
How do I pay taxes as a digital nomad?
Does the app work internationally?
Not tax or immigration advice. Residency rules vary by state and country and are fact-specific. Confirm your situation with a qualified advisor.
Sources: EU short-stay calculator; NY residency definitions.
Related: State movers · Schengen calculator · SPT calculator
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Beacon counts your days per state and per country, automatically.
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