⌛ Question for US Citizens or Dual Citizens Living in the Phils

Any US Citizen/Dual Citizen living in PI who are self-employed or rely on interest income? How do you handle your US taxes and reporting requirements for Philippine deposits over $10K? Are there tax people there who can help? Any tips?

 

Turbo tax my friend. I have been using turbo tax for about 12 years now and works great no matter what country u are in.....cowboy

 

It depends on your residency status and also lengths of stay outside the US.

If you are not a Philippine resident, and simply collect interest income from PI deposits, the IRS expects you to report and pay tax in the US. However, the US and RP have a tax treaty that allows you to deduct the Philippine withholding tax.

If you are a resident in the Philippines you have other options. And if you are a resident who has been outside the US for at least 18 months continuously and spends less than 3 months per calendar year in the US, you have even better options.

 

You still have to file...even though you most likely won't pay any US tax. My father was American....and I spent a large part of my childhood in the states.....I also worked in America for a few years later. Still maintain my US passport and have dual nationality although I haven't lived there for thirty years. Every year I still file in May/June to the IRS (you get a further two months to file if you live overseas). Never paid a dime. If you pay tax in most countries you don't need to worry about US tax. And in countries where you don't pay income tax (for example much of the middle east) you still don't pay if your income is less than a pretty generous amount. I believe that amount is around $90k USD at the moment. You do continue to pay tax on any income you derive from the US while you live overseas....ie pensions...etc. That's certainly my understanding. Check out the IRS website......or ask them....always happy to help those people at the IRS....And for my time working in the US I still get a few hundred dollars from social security at age 62...I asked them and they sent me a nice readout of entitlements......thanks!!

 

If you don't owe tax and are not above a set income amount, you do not have to file. One must have worked and paid inot the SS system 40 quarters (10 years) to be eligible to draw SS.

Larry

 

That filing amount for US citizens overseas is below:

Filing Requirements

If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad.

Your income, filing status, and age generally determine whether you must file an income tax return. Generally, you must file a return for 2008 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table.

Filing Status* Amount
Single $8,950
65 or older $10,300
Head of household $11,500
65 or older $12,850
Qualifying widow(er) $14,400
65 or older $15,450
Married filing jointly $17,900
Not living with spouse at end of year $3,500
One spouse 65 or older $18,950
Both spouses 65 or older $20,000
Married filing separately $3,500
*If you are the dependent of another taxpayer, see the instructions for Form 1040 for more information on whether you must file a return.

Just checked my SS statement again....I did almost 11 years...they included all that time I spent working part-time on various jobs from junior high-school till I graduated and left....LOL...my first year earnings was $264....then they added the work I did in the U.S. and for American companies overseas (mostly South-east Asia) and paid into the system. Uncle Barrack has seen fit to give me $421 a month from age 62....Still have to wait a little....and really appreciate it...

 

There ya go! I haven't filed in 10 years. I have 80+ quarters paid in, but don't have much hope of ever getting any of that back.

Larry

 

Larry, you probably did it already....but I thought I'd never get a dime of it back myself. Hopped on the SS website and they have a link there somewhere that you can send your details to - and they send a statement back. Took about a month, but they send quite a detailed report of what you earned/put in and when - and what you are (and aren't) entitled to. I was pleasantly surprised....and good luck!

 

What they say now means little when compared to what they may say 13 years from now, IF they even exist.

Larry

 

Its no problem we can camp out on Obamas front lawn in 13 years. How cold does it get in Detroit in the wintertime? Hehehe