American Expats Receiving Pension And Obamacare?

[chang beer]

Hi. This is for Americans who reside in P.I. and pension is the only source of income.

I'm in the process of retiring to Philippines in less than a year. I've had my pension and health by my union to send me forms for me to fill out. Forms were for direct deposit and what type of pension  I want. I didn't realize that if I'm going to be there full time..leaving america for good that I'd have to pay income tax (witholding tax rates)toward Philippines. 

Is this true?

 

This really wasn't an issue till  AFFORDABLE CARE ACT.

Initially I was going to keep my address here in the states to receive W2 forms,pension statements,renewed credit cards,bank statements and all other goodies. But If I decide to keep my name and address here,I'd ultimately have to sign up for INSURANCE(Obamacare). If you don't you'd have  to pay penalty for it. Unless you are already 65 and receiving medicare.

 

Are full time expats receiving pension there in Phils pay taxes there? or in addition to yours here in the states?

What about obamacare? Are you ask to sign up for it if in fact you still have an address here in America?

Catch 22 everyone is saying!!!

 

Really confuse dude.

thank you

Chang Beer.

[Tukaram (Tim)]

I use an American address for my bank but on my tax form tell them I live overseas.  The PPACA exempts American expats living abroad from the penalty tax.

 

 The US Patient Protection and Affordable Care Act (PPACA) or so-called “Obamacare” is focused on domestic insurance plans and is available only to residents of the US.  And American expats living abroad are ineligible to buy healthcare coverage through any individual plan under the PPACA.

 

~Edit~

I am lucky.  As a disabled vet I am exempt anyway because I have the VA for my care - even though it is almost unusable in the Philippines ha ha  (lucky - disabled - you don't see those used together often enough do you?)  :tiphat:

 

Source: https://www.healthcare.gov/am-i-eligible-for-coverage-in-the-marketplace/

Edited February 1, 2014 by Tuka Ram

[chang beer]

thank you for that Tuka Ram

[jon1]

Hi. This is for Americans who reside in P.I. and pension is the only source of income.

I'm in the process of retiring to Philippines in less than a year. I've had my pension and health by my union to send me forms for me to fill out. Forms were for direct deposit and what type of pension  I want. I didn't realize that if I'm going to be there full time..leaving america for good that I'd have to pay income tax (witholding tax rates)toward Philippines. 

Is this true?

 

You will have to pay Income tax on your pension. Also, even though you will be living abroad for more than 330 days per year, your pension income does not qualify for the Foreign Earned Income Credit. So you will have to pay Federal taxes at whatever rate coincides with your pension income. 

[earthdome]

If you are from the USA, regardless of where you live in the world, income derived from within the US is subject to US income taxes. They won't be subject to Philippines income taxes.

 

Keep a US mailing address and bank account for direct deposit of your pension.

 

I think you can opt-out of the Affordable Care Act if you reside outside the USA.

[Daydreamer]

am exempt anyway because I have the VA for my care - even though it is almost unusable in the Philippines ha ha

I was wondering about the VA here. I noticed that there is one in the Philippines and that getting in contact with them is like getting the US congress to pay attention to voters. What's up with that? :1 (103): :hystery:

[scott h]

VA is weird here in the Phil. To the best of my research, the VA in Manila is only for serious Service connected disabilities. For normal health care we must use tri care standard. Pay close attention to "certified" and "approved" doctors and hospitals. The list of each is updated monthly on the VA website.

[Tukaram (Tim)]

Yeah, the VA in Manilla is for service connected only.  In the US I could use them for all my care (and happily used them for all my care).  I don't live in Manila so I don't see me going there anytime soon.    :tiphat:

[JJReyes]

California is the most aggressive when it comes to taxation for residents and even former residents. One strategy is to change your state residency. In our case, my wife and I selected South Dakota for a number of reasons. Among them is you don't have to physically relocate. My wife and I have never been to South Dakota! All you need is a mailing address that mail forwarding companies will arrange for you.

 

Most states won't bother once you move overseas. California is the oddball because they are so desperate for revenues. At one time, they claimed that residents who moved away in retirement had to continue paying in California because that's where they earned the money. It was struck down by a federal court.

[Gerald Glatt]

There is no requirement that you have a state residence, unless you wish to vote there.  There are seven states w/o income tax and 5 that also do not tax dividends.  There are a few like California that tax everything and chase you for it.  Somewhere in my oversized and underused brain I seem to remember that a married couple has to make over 36k to owe federal tax. You must file though, think we got some sort of credit last year even though we didn't contribute. A mailing address is convenient, I have the post office hold mine while we are gone 4-5 months a year.  Great time coming home a checking how much I saved on those absolute lowest price sales that we missed.  Sigh, 4 years till Fe is on the doll too then I'll save those other months too.