income tax

[whittler 3]

A man from Norway,was telling me that they now have to pay income tax. I am from the USA, and have a retirement visa. Does this mean my pension is

subject to income tax ?

 

whittler

[Bazle 1,483]

A man from Norway,was telling me that they now have to pay income tax. I am from the USA, and have a retirement visa. Does this mean my pension is

subject to income tax ?

 

whittler

As far as I am aware, a foreign pension you receive in Thailand is taxed on the "remittance basis" - it is taxed only if you remit the money to Thailand. If you do, you will need to look at the double tax treaty between Thailand and the US (assuming the pension is from the US) to see if Thailand has the right to tax it. It's probably no big deal if Thailand DOES tax the pension as your US tax might well be reduced by that amount.

[joekicker 53]

US tax law is that you pay tax on any income. There are certain rules about it, which no one from Norway or England or Slobbovia or (probably) the USA can help you with in YOUR situation, but generally if it is income it is taxed by the US IRS. You MUST file a return. And in general if you collect, cash and spend a pension you must pay income tax on it, yes -- or to be more exact, it is taxable income, yes. The US is NOT NOT like most other countries, where if you are out of the country you have no income tax obligation.

 

However. If you are out of the US for 11 months of the year and are "resident" (US definition, not Thai), you get a large "free", non-taxable income of something over $80,000 (it changes each year) that you can take off the bottom line. In addition, the US and Thailand have a tax treaty - if you pay income tax in one, you don't have to pay it in the other, although if you live in Thailand AND receive income you MUST file a Thai return to even start to qualify for the benefits of that.

 

If you are asking the barroom lawyers on this forum about US taxes, you need a bit of help from the US. If you act on the various advice you get here from Yuropeens and other people, you WILL screw up.

 

.

[Bazle 1,483]

If you are asking the barroom lawyers on this forum about US taxes, you need a bit of help from the US. If you act on the various advice you get here from Yuropeens and other people, you WILL screw up.

Generally, I agree with this but I think the OP was referring to Thai tax.

 

Also, don't dismiss non-US people as all being ignorant of US tax. There are a lot of practitioners of US tax who are not Americans and who often know a lot more about US tax on US citizens abroad than US-based practitioners. I know as I worked with them for 35 years in various places!

[joekicker 53]

Also, don't dismiss non-US people as all being ignorant of US tax. There are a lot of practitioners of US tax who are not Americans and who often know a lot more about US tax on US citizens abroad than US-based practitioners. I know as I worked with them for 35 years in various places!

 

I don't dismiss anyone but at the same time, this isn't the place to be getting tax advice, generally speaking.

 

Here's the problem: You CAN get good advice, just as you say. And you CAN get rotten advice. And if you have come here LOOKING for advice, you have absolutely no way to tell the difference.

 

.

[whittler 3]

Thanks, guys for the responses. I do file federal income tax, and pay the taxes. I don't pay state tax, as I am a resident, of Thailand, for at least 11 months

a year. I was wondering, if I would have to pay a Thai, tax on my pension that I already paid tax on in the USA.

 

Thanks again,

 

whittler

[davebuczek 21]

US tax law is that you pay tax on any income. There are certain rules about it, which no one from Norway or England or Slobbovia or (probably) the USA can help you with in YOUR situation, but generally if it is income it is taxed by the US IRS. You MUST file a return. And in general if you collect, cash and spend a pension you must pay income tax on it, yes -- or to be more exact, it is taxable income, yes. The US is NOT NOT like most other countries, where if you are out of the country you have no income tax obligation.

 

However. If you are out of the US for 11 months of the year and are "resident" (US definition, not Thai), you get a large "free", non-taxable income of something over $80,000 (it changes each year) that you can take off the bottom line. In addition, the US and Thailand have a tax treaty - if you pay income tax in one, you don't have to pay it in the other, although if you live in Thailand AND receive income you MUST file a Thai return to even start to qualify for the benefits of that.

 

If you are asking the barroom lawyers on this forum about US taxes, you need a bit of help from the US. If you act on the various advice you get here from Yuropeens and other people, you WILL screw up.

 

.

 

You don't have to be out of the US for 11 months to get this reduction....

[Bazle 1,483]

I would urge you to take note of JK's comment above - not to rely on any "advice" you might receive here. However, this page might be helpful:

http://zhouzhenglawyer.com/2011/03/05/tax-relief-foreign-earned-income/