Jump to content


Full Member
  • Content Count

  • Joined

  • Last visited

  • Days Won


Gentleman.Jack.Darby last won the day on June 16 2018

Gentleman.Jack.Darby had the most liked content!

Community Reputation

141 Popular Poster

About Gentleman.Jack.Darby

  • Rank
    Full Member

Profile Information

  • Gender
  • Location
    United States

Blood Type

  • Blood Type

Country Of Birth

  • Country Of Birth

Recent Profile Visitors

The recent visitors block is disabled and is not being shown to other users.

  1. No U.S. bank has "branches" in the Philippines as we Americans experience branches in the U.S., such as going to a JP Morgan Chase branch in New York if one's home account is in Arizona While Citibank is in Manila and Cebu, that is Citibank Philippines, not a branch of U.S. Citibank, so one would need to open an account there and the minimum to open an account is PHP 1 million, about USD 20K. And one would likely find it difficult to open an account there unless one has a visa type, such as an SRRV, that allows at least a one year stay or is more-or-less "permanent" On the good side regarding banks, if one did set up a Citibank Philippines account, it wouldn't be necessary to stay in Manila to use it. One could always transfer money from one's Citibank U.S. account to one's Citibank Philippines using Global Transfers and then transfer the funds to another more convenient Philippines bank using Philippines BancNet Living off capital gains from day trading in-and-of-itself isn't a pipe dream; after all, it's spendable cash just as is cash from a pension I'm not sure how your day trading gains would be tax free since U.S. trading platforms report activity to the IRS, so that wouldn't change simply by virtue of being in the Philippines. I suppose one could try to set up a Philippines trading account, but that would likely be difficult on a tourist visa and that would subject one to Philippines taxes and could be construed as "working", which is definite "no-no" on any type of tourist visa or without a work permit And I know folks throw out the U.S. tax code "earned income exclusion", but that exclusion applies to income earned while a legal resident of another country, subject to that country's tax laws and paying taxes, for income earned in (from) that country; it doesn't grant an exclusion for U.S. income arising from a source in the U.S., such as dividends, interest, capital gains, etc. while one is a tourist (non-resident) outside the U.S. I would suggest thinking long and hard about trying to live in the PI on an income stream, such as capital gains, that isn't stable and reasonably guaranteed I'd also think long and hard about one's tax situation and make sure the equivalent of USD 2K, before taxes, is enough to support one's intended lifestyle
  2. I was looking at it from a different perspective, but it's all good
  3. As you say, in the U.S., the IRS considers most folks to be honest, with that "honor" being helped along by the fact that banks and other financial institutions provide information directly to the IRS regarding interest earned, dividends earned, etc. However, even with that reporting, there are some folks that the IRS just plain old doesn't trust as far as they could throw them - for those folks, the IRS designates them as subject to backup withholding; when one of those folks sets up a financial account, they designate on the account application that they are subject to backup withholding and the financial institution will withhold a percentage of account earnings and submit them to the IRS, much like employers do with income tax withholding
  4. Without knowing the specifics of your tax situation, I would recommend filing a Philippines return, just to make sure all the "i"s are dotted and "t"s are crossed It may be that the interest earned on your Philippines account is not enough to trigger a Philippines tax liability and the withheld tax is refunded; IF your U.S. return was ever selected for audit (the IRS performs what are called "compliance" audits to see how well taxpayers understand and are following the tax laws - they are not auditing because they necessarily think a specific taxpayer is cheating, they are auditing to be confident, using a random sample, that, statistically speaking, MOST taxpayers understand the rules and are complying), having proof (a copy of a Philippines income tax return) showing that you paid Philippines tax (or not, if the withheld tax was refunded) would give an IRS auditor a much "warmer and fuzzier" feeling regarding Philippines income and tax than would a simple bank statement showing simply that interest was earned and tax withheld
  5. It might be possible for her to get an ITIN without being in the U.S. See the following IRS page for general information about TINs and specifically ITINs: https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin I extracted the following section from that page (it's under the ITIN section, about halfway through): Acceptance Agents are entities (colleges, financial institutions, accounting firms, etc.) who are authorized by the IRS to assist applicants in obtaining ITINs. They review the applicant's documentation and forward the completed Form W-7 to IRS for processing. According to this IRS page, which was last updated January 8, 2020, there are two IRS-authorized Acceptance Agents in the Philippines: https://www.irs.gov/individuals/international-taxpayers/acceptance-agents-philippines Seems strange that there aren't more Agents in more convenient locations, but perhaps most folks who need that service are near AC, but Illocos Norte, now that seems counter-intuitive. Hope it helps
  6. The Earned Income Credit won't help the OP since that credit is designed for low-income folks whose income is from employment rather than interest.
  7. I think what you're referring to in the Foreign Earned Income Exclusion, which applies to folks working outside the U.S. For the interest earned on a bank account in the Philippines: IF you file a return and pay income tax on the earnings to the Philippines, for your U.S. return (IF you meet the taxable income threshold for filing a U.S. return), you would enter the interest amount as income AND take a credit for foreign taxes paid (to the Philippines) against any U.S. tax liability; If you DON'T file an income tax return and pay income tax to the Philippines, you would still enter the interest amount as income, but you won't have a credit for foreign taxes paid, i.e., you'll pay income tax just as if the interest was earned in the U.S.
  8. The only time an income tax return MUST be filed is if the taxpayer has taxable income. The IRS doesn't care where a taxpayer is only, if he has taxable income, that a return, or documentation providing enough information to identify the taxpayer and to compute any tax liability, be filed and the tax paid I always recommend filing a return, even if a taxpayer has no taxable income, because the statute of limitations for audit purposes doesn't start unless and until a return is filed.
  9. Based on the facts given, I'd say "No", but if it's something that you're set on doing, I'd recommend giving the following things a LOT of thought and be sure you have realistic plans in case things don't work out: Make sure that you really understand the effect that inflation will have on your income stream down the road; and by really understanding, I mean sitting down with a spreadsheet or inflation calculator and really seeing what your proposed income stream of today will buy you in 15 years, 25 years, 35 years, etc. It's really not enough to understand the abstract concept of inflation - one must see the actual effects on one's own income to really understand and appreciate how it can upset the best laid plans Pay attention to your life expectancy which goes hand-in-hand with the negative effects of inflation; the longer one lives, the worse the effects of inflation on one's income stream. For someone aged 38, their AVERAGE life expectancy is about another 43 years, meaning, on average, they can expect to live until age 82; one other thing to understand about life expectancy is that the longer one HAS lived, the longer one can EXPECT to live - that same person who is 38 today, if he lives to age 70, can expect to live another 17 years or to age 87, an increase over the average life expectancy of 5 years, which may not seem like long if one is age 38 with a steady income, but could be an eternity if one is that age and running out of money. Of course, those life expectancies are the AVERAGES - significant percentages of folks live beyond them Never forget that more market downturns are coming and that the market value of your nest egg will fluctuate no matter where it's invested, including "safe" things like bonds. The current climate of low interest rates, low inflation, and outsize average returns on equities IS NOT the "new normal". My working life of 40-plus years has seen a prime interest rate of 18 percent (which lowers the value of bond funds) and three major equities markets "crashes" - 1987, 1999, and 2008. For me, the crashes were not devastating events because I had a steady income stream while working and I'm bullish on America (didn't sell when prices were swirling down the toilet), so my nest egg has recovered and then some; as well, during those crashes and the aftermath, I wasn't dependent on my nest egg for daily living expenses While it is generally accepted that if one takes only 4% of one's nest egg per year one is unlikely (not guaranteed if one lives to a very old age) to run out of money during one's lifetime, keep in mind that the 4% rule requires that one stick to 4% every year, which means if one's nest egg decreases because of a market downturn, one takes less in a bad year; not a big deal if one's budget has enough cushion to cut a few "luxuries" in the lean years but could be quite unpleasant if the budget is tight and a market downturn is prolonged Keep in mind that while a monthly income of USD 2,000 to 2,500 should allow for comfortable living in the Philippines, it would certainly not allow for a very comfortable living in the U.S. if one had to return home for some reason, such as political unrest, ill health, a family emergency, or if the Philippines one day decides that long-stay foreigners are no longer welcome, as is currently happening in Thailand. And last but by no means least, give a lot of consideration to health care, especially in old age, since one day, God willing, we all grow old and frail. Good health care is quite inexpensive outside the U.S. when one is young and healthy, but when one gets to around age 70 and beyond, it becomes pretty expensive and in many case unobtainable. U.S. Medicare is an exceptional deal compared to the alternatives outside the U.S., so it's a good idea to ensure that, even if you don't plan, right now, to take advantage of it at age 65, that you have enough work credit to be eligible for it when needed down the road.
  10. I expect it will be fine The 754.777.xxxx number is your GV number, correct? The reason I ask is that I have a second inexpensive folding phone that I keep as an emergency phone in the house and as a testing phone that I added to GV - while I can't use the GV app on that phone since it's a "dumb" phone, it's a backup phone on which I receive GV calls and SMS About once a year, I get a message from Google that I need to verify that I still own that phone number by having GV send a verification code to that phone and then entering the code in GV on the desktop Something for folks to plan for if they're thinking about activating GV and then ditching the activation phone or taking the activation phone outside the U.S. to use with a local SIM card
  11. It's not quite correct that one must file a state tax return if one has income in a state. For example, if one has a bank account in California and that account earns interest, the interest will be reported by the bank to the California Franchise Tax Board, which brings it to the FTB's attention. However, if one is not a resident of California and does not spend any significant time in California or have any substantial business presence in California, the interest will not be taxable in California, but it will require demonstrating to the FTB's satisfaction that one is not a resident of California. The reason that you got a letter from the FTB for your rental house in Florida and for the life insurance dividend is because you used a California mailing address with those companies which, as far as the FTB is concerned, is prima facie evidence of residency
  12. Google Voice and Skype are both VOIP (Voice Over IP) services which means that they use the internet as the infrastructure to complete calls, as do most other telephone services nowadays Two big differences between GV and Skype: GV is free for making calls to U.S. numbers, both cellular and landline, or what passes for "landline" nowadays, e.g. a "landline" from one's cable company, which is really just a VOIP number with a device that looks like a conventional phone If one wants to make calls using GV to a number outside the U.S., one must buy credit which is essentially the GV (VOIP) equivalent of load With GV one can RECEIVE SMS (text messages) just as one would do with a cell phone, sent by anyone at any time - Skype does not have that capability. With Skype, one can only RECEIVE a reply to an SMS that one has sent, which means Skype won't work for things like two-factor authentication (TFA) bank verification codes or a "HAPPY BIRTHDAY" text from one's kid, for example.
  13. You will be able to connect to the U.S. servers of Netflix and Amazon without a VPN. However, as far as streaming content in your Netflix and Amazon lists, you probably won't be able to watch everything because it's likely that at least some of the items on your lists won't be authorized by the copyright holders for viewing outside the U.S.
  14. That leakage is likely related to (now fixed) bugs in old browser versions or possibly one of the WIndows OS services on one's machine It's always a good idea to routinely check that one's browser is up-to-date since some browsers don't automatically update when a new version is available. And it goes without saying that one should always update to the latest computer OS, especially if one is running Windows - No more Win XP folks! Time to move to Windows 10 since Windows 7 extended support (security patches) is ending January 2020 - If one is running Windows 10, you'll have extended support until 2025 Or better yet, get a Chromebook and be done with all the Windows BS
  15. Not sure about links on this forums, so just Google 'bittorrent' and the site (for BitTorrent) will come up first on Google. The download will be the usual Windows executable that you'll click to run and install
  • Create New...