I recently just adjusted my w4 withholding with my employer. Since I am considered an expat worker I am able to qualify for the Foreign Earned Income Exclusion. I am able to adjust my withholding so that I don’t have to give the federal government an interest free loan. For 2014 I am qualify up to $99,200 tax-free and I also include my 401k which is tax defer of $17,500. That will bring me up to a total of $116,700 once my gross income get close to $116,700 I will readjust my w4 so that the federal taxes will be taken out of my paycheck.
According to the IRS, the requirements to qualify for this benefits are:
To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income, your tax home must be in a foreign country, and you must be one of the following:
So have you ever thought about volunteering abroad?
For the past couple of months I have been looking at abroad volunteering programs for when I go on my R&R from work. I recently found one and applied to it, the volunteering organization is called a broader view (ABV), I was accepted and I’m so excited and can’t wait until October for my program to start. I plan to go to Cusco, Peru for 2 week, taking a Spanish immersion class and helping out in a children orphanage center.
Here is 9 common 401k mistake that people make:
1) Not participating in your 401k - many people choose to either ignore this or don’t bother to read their company benefits. They don’t realize the benefits of contributing to a 401k.
So you just graduated from college and excited to start your new life and job. You have student loan debt that you have no idea how you’re going to pay for it. You started to apply for jobs only to keep getting turn down. You notice several people that you graduated also applying for the same job as you. So you feel hopeless and not motivated enough since there are too many competitions.
Have you ever consider applying for jobs oversea?
So what will it take to become FIRE (Financially Independent Retired Early)?
Ever thought what will it take to become fire? I have always dream of traveling the world and not worry about being broke. Although I have not achieved that goal yet I know with hard work I can make it a reality. I would never guess in a million years I would be working in Afghanistan, as I am writing this post and making good income. So I thought to myself, what will it take to become fire and what step should I take.« Continue »