redhorse Posted March 26, 2012 Posted March 26, 2012 Hi guys. Something I never thought of. One of my pals just asked me if I'm exempt from paying any taxes for income received...be it pension and social security from the states taxable in P.I.? Paid to Phils or Thailand for that matter. I DON'T THINK SO!!Am I wrong. What's the deal?thank you guys. Redhorse :hystery: :lol: :thumbsup: Link to comment Share on other sites More sharing options...
Steve & Myrlita Posted March 26, 2012 Posted March 26, 2012 Hi guys. Something I never thought of. One of my pals just asked me if I'm exempt from paying any taxes for income received...be it pension and social security from the states taxable in P.I.? Paid to Phils or Thailand for that matter. I DON'T THINK SO!!Am I wrong. What's the deal?thank you guys. Redhorse :hystery: :lol: :thumbsup:The general rule of thumb is US income is taxed only in the US. RP tax is only taxed in the RP as long as the RP income is less than $87,000 which I seriously doubt you could ever generate that here. 2 Link to comment Share on other sites More sharing options...
KanoJoe Posted March 28, 2012 Posted March 28, 2012 Yes, you are liable for US taxes even when living abroad.You are liable for US Federal taxes on ALL income you receive from the US. This includes pensions, 401K, social security, dividends received and interest earned.If you earn income overseas, as of this year, the first $92,900 earned is exempt from US taxes.http://www.irs.gov/publications/p54/index.htmlhttp://www.irs.gov/publications/p54/ch04.html Link to comment Share on other sites More sharing options...
Americano Posted March 29, 2012 Posted March 29, 2012 Here is the impression I got from IRS before I retired in 2009. You have to pay US Federal taxes on all income you receive from the US, even if you are living on another planet which is 100 billion light years away. Your physical location has no effect on your US Federal Tax liability. Uncle Sam wants some of his money back. Link to comment Share on other sites More sharing options...
wingmanPI Posted March 30, 2012 Posted March 30, 2012 I was under the impression that if you lived in PI the 92,500 USD exemption applied to any incomeyou earn period. is that not correct? I am wondering about income you earn online specifically.would appreciate any info... Link to comment Share on other sites More sharing options...
i am bob Posted March 30, 2012 Posted March 30, 2012 (edited) I was under the impression that if you lived in PI the 92,500 USD exemption applied to any incomeyou earn period. is that not correct? I am wondering about income you earn online specifically.would appreciate any info...As a Canadian, we get bombarded with the answers pertaining to the US when we try to find out what it is in Canada... Plus I used to set up the networks for a lot of Americans who were making their living online. Depending on where they lived (and their tax situation) would dictate which companies I could run them through due to mainframes and server locations. Thus even I can answer this for you...Any income - regardless of where you live - that is US based is taxable in the US.If you make income outside the US and it is not US based - and thus you are also living outside the US, you can make the amount $92,500 (as per your numbers) before you have to pay your taxes in the US on the remainder above the $92,500.Any money made online depends on where you are living. Now this is different than you will expect and is tricky so be careful... Watch out if you have a US mailing address because that will be where you are considered to live for tax purposes. If you have moved from the US, don't have a residential tie to the US (home address, mailing address for tax purposes, etc) and your servers (or the company you use - their servers) are not located in US or US territories or have ties to the US for tax purposes, then you can make the $92,500 as long as you are still an American citizen. It's getting difficult to get away from those taxes, eh? Basically you have to give up your citizenship and all your pensions, etc to get around this. But not all is lost! There are many loopholes in the system and the laws are being changed again (looser or stricter yet I don't know) so a good tax accountant / lawyer will be able to tell you what will be taxable or not next year. Or you could just check your tax information booklets for those who work online. :cheersty:Just wanted to add this question... If you are in the Philippines and working online - and you are not running your business through US servers, I don't know how the "revenuers" are going to know you made any money, do you? Any idea if there is a tax treaty? Or could it be banking arrangements? Of course we are all honest law abiding citizens so we will all pay the taxes as required! Edited March 30, 2012 by i am bob Link to comment Share on other sites More sharing options...
Mike S Posted March 30, 2012 Posted March 30, 2012 Anyone on SS .... unless you have other income you don't need to expect to pay any taxes on your SS ..... this year I will not even have to file a return as we make under the amount needed to file .... course this may change in the near future as everyone maybe expected to PAY THEIR FAIR SHARE ...... :nudie: 2 Link to comment Share on other sites More sharing options...
wingmanPI Posted March 30, 2012 Posted March 30, 2012 I was under the impression that if you lived in PI the 92,500 USD exemption applied to any incomeyou earn period. is that not correct? I am wondering about income you earn online specifically.would appreciate any info...As a Canadian, we get bombarded with the answers pertaining to the US when we try to find out what it is in Canada... Plus I used to set up the networks for a lot of Americans who were making their living online. Depending on where they lived (and their tax situation) would dictate which companies I could run them through due to mainframes and server locations. Thus even I can answer this for you...Any income - regardless of where you live - that is US based is taxable in the US.If you make income outside the US and it is not US based - and thus you are also living outside the US, you can make the amount $92,500 (as per your numbers) before you have to pay your taxes in the US on the remainder above the $92,500.Any money made online depends on where you are living. Now this is different than you will expect and is tricky so be careful... Watch out if you have a US mailing address because that will be where you are considered to live for tax purposes. If you have moved from the US, don't have a residential tie to the US (home address, mailing address for tax purposes, etc) and your servers (or the company you use - their servers) are not located in US or US territories or have ties to the US for tax purposes, then you can make the $92,500 as long as you are still an American citizen. It's getting difficult to get away from those taxes, eh? Basically you have to give up your citizenship and all your pensions, etc to get around this. But not all is lost! There are many loopholes in the system and the laws are being changed again (looser or stricter yet I don't know) so a good tax accountant / lawyer will be able to tell you what will be taxable or not next year. Or you could just check your tax information booklets for those who work online. :cheersty:Just wanted to add this question... If you are in the Philippines and working online - and you are not running your business through US servers, I don't know how the "revenuers" are going to know you made any money, do you? Any idea if there is a tax treaty? Or could it be banking arrangements? Of course we are all honest law abiding citizens so we will all pay the taxes as required!thanks for the helpful info. cheers! Link to comment Share on other sites More sharing options...
redhorse Posted April 1, 2012 Author Posted April 1, 2012 Thank you guys for the info. take careRedhorse :cheers: :hystery: Link to comment Share on other sites More sharing options...
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