Retirement benifits

[rfalves]

Is there anyone that can tell me ( who is receiving US Social Security Benifits ) If the US withholds some of your benifits because you live out of the USA? I have heard that US Gov holds back 30% of payments made to persons living outside of the USA.
Also The same question for Military Retirement Benifits. Thank you for the help.
Ron USCG Ret.

[harvcarp]

Never heard that and it does not apply to me. Where did you get that info?

[rfalves]

Some one told me that Uncle Sam holds back 30% of SS Benifits for persons living out of the country because USA fears persons living outside USA may forget to file US tax returns. How does it not apply to you?

[*Lotus]

That was brought up once before on this site…

[harvcarp]

From SS website, Q&A.
No mention of any requirement to hold back under any circumstances.

Can I have federal taxes withheld from my Social Security check?
Question
Can I have federal taxes withheld from my Social Security check?
Answer

Although you are not required to have federal taxes withheld from your Social Security benefit, you may find that easier than paying quarterly estimated tax payments.

[maravilla]

And isn’t it also true that if SSA is your only source of income — regardless of where you are living — that you are not even required to file an income tax return?

[rfalves]

Thank you, I guess I will have to go to SS office. I also draw a large Military Pension. So That may require me to file tax returns. I will go to SS and to IRS to get the answers from the horses mouth. And write down names and Federal Statutes numbers.

[aguirrewar]

WRONG;

Regardless of your income from $1,000 a month to whatever, you have to file or you are inviting problems (Big ones) with the IRS.

You just fill out a different form at the minimun level and there are no taxes to pay but you still file.

Collecting from the SS and Dept. of Defense are incomes generated in the USA. The amount you collect is what puts you in different TAX brackets.

Go and find out, good luck.

Warren

[maravilla]

I got this off the SSA.gov site:

If the only income you received during 2007 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable.
Base amount. Your base amount is:

*

$25,000 if you are single, head of household, or qualifying widow(er),
*

$25,000 if you are married filing separately and lived apart from your spouse for all of 2007,
*

$32,000 if you are married filing jointly, or
*

$-0- if you are married filing separately and lived with your spouse at any time during 2007.

It has always been my understanding that if you, as a couple, are receiving less than $32,000 a year in SSA benefits, you are not required to file a tax return if you have no other income to report. Am I wrong?

[aguirrewar]

Yes Maravilla that is the wrong interpretation of filing a tax return. You file regardless but the forms are different. You must file and if under the threshhold you do not pay anything.

ALLWAYS file your tax return for that year, always. You do not pay everytime you file a Tax return but you will have to answer WHY you did not file for that year. The IRS makes the rules of how much you pay according to earnings if you file that year and if you do not make that amount to pay then you do not pay anything.

Wrren

[maravilla]

Then why does it say you do NOT have to file? Trust me, I fear the IRS more than anything, so I would never NOT file if I had income that was taxable, but according to that section, and according to many people I know whose only income is SSA under that specified amount who do NOT file either, that it’s perfectly okay provided you meet all the criteria.

[aguirrewar]

But:

He said he has military retirement income which adds to his Social Security income and put’s him in another income bracket and that is why I tell everyone to file regardless. It will not hurt you to file and NOT pay the IRS but it will be an OUCH if you do not file and the IRS finds you in contemt of their regulations.

Just file, it is only a paper trail for you and if the IRS latter investigates you for any reason you are covered. Regardless of if you do not have to pay any taxes, FILE.

[bogus1]

I have my full SS check directly deposited to my checking account at Banco de Costa Rica. No 30% holdbacks.
Bogus1

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