Pay Less Retirement Taxes

[JJReyes]

Philippines is included among the "10 Places To Retire and Pay Way Less In Taxes," an article by Business Insider. One reason is retirement income from overseas is not taxed. The article is fairly shallow but at least the Philippines is now attracting attention as a potential retirement destination.

http://www.businessadvicesource.com/retire-pay-less-in-taxes/utm_medium=CPC&utm_campaign=Taboola&utm_content=LessTaxes_Mob_MatureShoreLookbackC1&utm_source=businessinsider

[AlwaysRt]

44 minutes ago, JJReyes said:

Philippines is included among the "10 Places To Retire and Pay Way Less In Taxes," an article by Business Insider. One reason is retirement income from overseas is not taxed. The article is fairly shallow but at least the Philippines is now attracting attention as a potential retirement destination.

http://www.businessadvicesource.com/retire-pay-less-in-taxes/utm_medium=CPC&utm_campaign=Taboola&utm_content=LessTaxes_Mob_MatureShoreLookbackC1&utm_source=businessinsider

Oh goodie, all I see in articles like that is a higher rate of Kanu inflation.

[earthdome]

2 hours ago, JJReyes said:

Philippines is included among the "10 Places To Retire and Pay Way Less In Taxes," an article by Business Insider. One reason is retirement income from overseas is not taxed. The article is fairly shallow but at least the Philippines is now attracting attention as a potential retirement destination.

http://www.businessadvicesource.com/retire-pay-less-in-taxes/utm_medium=CPC&utm_campaign=Taboola&utm_content=LessTaxes_Mob_MatureShoreLookbackC1&utm_source=businessinsider

That makes sense for selecting what state to retire to but what country you retire to makes no difference on your income taxes. If you are a US citizen you must pay income taxes on income derived from the USA regardless of what country you are residing in.

[scott h]

I will not comment on the article,  but just express what I know for a fact in MY case. I retired with a USA federal pension. Upon retirement my home of record was California. On all the forms I put my retirement address as here in the Philippines. Since retirement my pension has only be taxed by the federal government (I am saving a bundle by not paying state taxes). The only state taxes I pay is a small amount upon income we earn from a rental property that is in California.

Having said all that, my mailing address is my sisters house in California. I have my taxes done by a professional there in California. Submitted 4 tax returns so far in retirement and, knock on wood, no problems or comments from the IRS or California's franchise tax board

[JJReyes]

2 hours ago, earthdome said:

That makes sense for selecting what state to retire to but what country you retire to makes no difference on your income taxes. If you are a US citizen you must pay income taxes on income derived from the USA regardless of what country you are residing in.

I moved from a high state income tax (Hawaii) to zero state income tax (South Dakota). Additional savings for our two sons since there is no inheritance tax in South Dakota. My wife and I have less than $12 million in assets, so no federal inheritance tax. 

US citizens and legal permanent residents pay federal taxes on their worldwide income. What the article alludes to is some countries will tax your USA retirement income while many like the Philippines won't. 

[JJReyes]

1 hour ago, scott h said:

Having said all that, my mailing address is my sisters house in California. I have my taxes done by a professional there in California. Submitted 4 tax returns so far in retirement and, knock on wood, no problems or comments from the IRS or California's franchise tax board

I would be extra careful with California's taxing authority since the state is running out of money and taxing authorities are very aggressive. My understanding is the "look back" period is ten years. Having said that, unless you owe more than $10,000 by their calculations plus interest and penalties, chances are you are not worth pursuing. 

[scott h]

9 minutes ago, JJReyes said:

I would be extra careful with California's

Oh, I am, I declare every penny of income derived within the state.