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I recently applied for Social Security. I am 63. My entitlement date is June 2009. My payments will be over $1800/month but SS cannot pay me right now because I am still working and earning too much. I would like to continue to work from Costa Rica over the Internet for a little while because I can earn more than I would receive from SS. I will be moving to Costa Rica in June. The question is “can I apply for Pensionado status for myself and my wife or do I have to quit working so I can actually start receiving SS to apply for my Pensionado status”. I will start receiving it as soon as my earnings go below what I would get from SS – I would just hate to pass up the opportunity to work for a few more months and earn more. This is kind of a dilemma for me right now. Of course I would like myself and my wife to get our residency so we do not have to leave the country every 3 months and can apply for medical care. Since I have my award and I will always be making over $1800/month is there anything I can do or do I just have to wait until my earnings go below the magic number and I start getting SS payments? I have talked to a lawyer in Costa Rica and have not received a definitive answer. Does anyone know?
This is just a guess . . .
When you apply for residency as a pensionado, you must submit acceptable proof of your guaranteed income, such as Social Security. If you, bbrunsca, actually have an award letter which reflects the minimum income amount, I would think you’d be fine. How would Costa Rica know whether you’re actually receiving that monthly amount? Social Security won’t deposit it in a bank outside the U.S., so how might Costa Rica verify the actual cash flow?
And, if you’re going to begin actually collecting your Social Security in June, you will be receiving it before Immigration can process your application anyhow.
Hola David,
I thought that would be the case but an attorney said it was not “good enough” and I am still waiting to hear from him on what is “good enough”. Somehow I has this thought that it might be due to that SS will not be depositing money into my account in Costa Rica until my earnings go down, until then I do not meet the criteria? I was just wondering if anyone else had been in this same situation.
Bob
bbrunsca: I began recieving my SS benefits at age 62 in Costa Rica which were deposited in Banco Nacional into a savings account. Yes, the US SS will do this for 6$ a month. I also kept working in CR to increase the amount of a future CR SS pension. The US SS became aware of this and because I retired before age 65 sent me a bill for 11K and asked for a check to pay them back. I appealed the decision but no answer yet and no SS payments. My advice is be carefull working in Costa Rica and recieving US SS benefits in CR. It seems that CR did not sign a reciprocal treaty with the US which makes this against the SS rules. No US SS, no job but CR SS. Live and learn. Pura Vida and life in the tropics.
As orcas06 rightly points out, for $6 per month, you can arrange for your U.S. Social Security payment to be indirectly deposited into your Banco Nacional account here. First it goes to a bank in New York (I think) and they transfer it here.
That said, it’s not a requirement for residency. Marcia and I qualified as pensionados based on my State of Michigan retiree’s pension which is direct-deposited to our account in the U.S. Marcia’s Michigan pension is deposited there as well. And now that I collect Social Security that, too, is direct-deposited into our U.S. bank account.
The point is that for pensionado residency, at least, you must have the required income stream and be able to document it convincingly. You do not need to have it deposited in any Costa Rican bank. orcas06’s arrangement is merely a convenience.
David makes a good point on the timing issue…. chances are that by the time your application makes it’s way to any meaningful review you will in fact be collecting your SS. The problem the attorney might have with your situation is his submitting an application that on it’s face he knows does not contain the required elements (receiving SS income) to be processed. Or starting an application that has a SS document that’s out of the ordinary. I’m not sure if an immediate review is done when the application is submitted and that it would be rejected immediately.
Placing the process in motion and then having to submit your actual award declaration letter from SS when you stop working might not be the way to go. I’m sure the folks at CR immigration know what the “usual” SS income documents look like and submitting something different might put you on the radar for attention you might not appreciate.
My advice is it would be better not to attempt to submit your application until you are actually getting your SS and have the normal documents to prove it. Anything less might create problems far beyond the minor bumps you’ll have to deal with in waiting. Getting caught up in making an application when you know you’re currently NOT receiving the income you’re swearing you have might get not only you…. but the attorney in hot water… hence his response.
Edited on Apr 13, 2009 17:47
I started receiving my Social Security in February. I started five months early because Social Security made me an offer I couldn’t refuse! When I signed up for Medicare several months before my 65 birthday (July 10, 2008), my case worker asked how long I planned to continue to work. I said probably until my 68 birthday. She offered for me to call back in September and setup to receive my benefits five months early, in February 2009 instead of July 2009 at the time of 66 birthday. So now I now am continuing to while getting a nice little deposit from our Uncle Sam each. In July this year, as I stated before, when I turn 66 the earning threshold is off for me and I can earn as much income without fear of paying incomes taxes on my SS deposits. I will continue to pay social security taxes however on my earned income for each year I continue to work.
This is my point, don’t screwed around with Social Security. If you need to work a few more months or maybe even a year then you must be upfront with them. If you work from Costa Rica and an American company pays you miscellaneous income and issues a 1099 next January, they will eventually find you out. May not be next year but it will be found out since you will be in the Social Security system drawing your happy little checks. From my conversations with my Social Security caseworker, they know all the games we can dream up. If you want to continue to work for a while, then stop the Social Security from coming to you now if you don’t want to any pay income taxes because at 63 you will! Put it off until you are done working is the best advice I could possibility give. Do fool with Uncle Same, listen to the person mentioned a 11K “hello” letter they got from them.
What is the advantage of having to deal with them from such a long distance if you decided to go forward unless you think you can’t find anything more interesting to do in Costa Rica with your time. If you even mentioned to whoever you talked to in person or on the telephone at Social Security you are going to retire out of the country, I bet your file has a flag on it! Contrary to what many Americans may think of the government workers, they are not stupid by a long shot!
Remember a few months or year continuing to work will gain you additional Social Security income credits when you draw your checks if decide not to take them now.
Gracias y buena suerte!
Tom on a Budget in Portland, Oregon.
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