Oddbean new post about login | logout Yup its actual more if you don't work for an employer
It appears though that if your activity benefits the general public like open source software, and all funds are used to pay running costs and not distributed as profits, then you are engaged in a "not-for-profit" activity, you don't need to file Schedule S or Schecule SE and you don't need to pay self-employment tax. That's how I'm reading it (so much reading! I hate taxes).
Are you in the US?
I am in New Zealand. But I'm a god damned American citizen and they won't let me quit without taxing 100% of my "stuff" as an exit tax.
Seriously?
Digging into this again to get you a reference and it looks like I am wrong. There is a mark-to-market regime, but (1) I don't qualify under the 3 tests, and (2) even if I did there is a $600,000 reduction and an $821,000 exclusion.... looks really complicated to work out though... but worth it to stop filing US taxes.
Under penalties and perjury...so they never forced you to sign.
Why can't you renounce?
Just pay the exit tax,especially if you believe BTC might be worth more in the future.
Looks like if I renounce I will not be a "covered expatriate" according to instructions for form 8854. I'm gonna do this.
Go get ur freedom
Still not see the power of Monero, anon? What Bitcoin is for theft through inflation, Monero is for theft through taxes. The second is even more powerful, as it changes the relationship between individual and state. #ETF - end the fed is nice but #ETA - end the abuse is even better
Generally I claim the foreign earned income exclusion and pay $0 to the US. But IF I am self-employed and owe self-employment tax (and I haven't determined that yet), then I owe that and I can't exclude it, not even via the double-tax treaty (US-NZ doesn't have a social security treaty). But if I am engaged in a not-for-profit activity (even without being a US 501(c)(3) this can still apply) then the income is treated differently.... and I think it applies since open source software benefits everybody, not just me, and the grant covers my living expenses and was even paid by a 501(c)(3) as living expenses to a grantee. So now I'm going down this instruction at the top of Schedule C: "For example, a sporadic activity, a not-for-profit activity, or a hobby does not qualify as a business. To report income from a nonbusiness activity, see the instructions for Schedule 1 (Form 1040), line 8j" Did I mention yet that I hate doing my taxes?
Ahh because your work benefits humanity they wave that tax! Okay, this is good news for you. Most cases its not. Also, they usually leave out that tidbit.
my take with taxes as a self employed person is: once you read it the way you want it to read, run with it and youll prolly never get audited anyways 🤙