Paying Taxes--Soc Security Long Term Disability

[Ultravox]

Hi...will be getting approximately $2500.00 per month long term disability. Will be living in cebu , payments direct deposited in to a US account. Do I have to pay any taxes--or file a tax return at all? Anyone know the rules on this? Thanks!!

[scott h]

Do I have to pay any taxes--or file a tax return at all?

 

Philippine income taxes? No. You only have to pay taxes to the Philippines on income earned in the Philippines.

 

USA taxes? Yes (in my case with a military pension) I am not a tax professional, but I am relatively positive is that if your paying taxes on your disability income in the States, you will have to file while you are here. (federal anyway).

 

What I did was change my home of record to the Philippines when I retired, that way I don't have to pay Jerry Brown any, just Mr. Obama lololol.

[chris49]

Hi...will be getting approximately $2500.00 per month long term disability. Will be living in cebu , payments direct deposited in to a US account. Do I have to pay any taxes--or file a tax return at all? Anyone know the rules on this? Thanks!!

 

Philippines taxes. No ,that would be dual taxation, income earned in one country will not be taxed in a 2nd country.

 

US Taxes, depends on your total income. Assume you know that, you still file your US taxes each year.

Edited December 14, 2015 by chris49

[Ultravox]

Thank you both for the replies. Am sorry was unclear. Yes, was just referring to US taxes. Am new to all this---SS disability income---just wasnt sure how taxes worked and if had to file. I have since discovered-as you both stated-yes, I do...IF income over 25 k-which it will.

Do most folks there have income direct deposited in US accts, then transferred to a peso account there? I know CitiBank has a Cebu branch...Any recommendations?

Thank you!

[scott h]

Do most folks there have income direct deposited in US accts

 

Ultra great question, I will speak for all here (I hope) its great to see a prospective expat asking these questions now instead of 2 weeks after they arrive and there world is falling apart lolololol.

 

There are many different methods depending on a persons personal preference. This is what we do:

 

My pension is directly deposited at Citibank USA. My wife and I keep a 3-6 month "slush" fund here in the Philippines (once we got a good handle on our monthly expenses. When our slush fund reaches the 3 month amount we deposit paper checks at our Philippine bank and wait the 3-4 weeks for them to clear. Repeat as needed. We also have our USA credit card to make large purchases which the wife monitors and pays online.

 

Like I said, that's what we do, works for us, others will tell you their methods, and all you have to do is pick the option that suits you best.

 

Keep em coming :thumbsup:

[Ultravox]

Scott, thank you!

So I understand...you then pay your bills there in Philippines from your acct there. The checks you deposit in it are from your US acct....

Do you keep a US address?? I am able to, if needed...am assuming (?) it can be helpful when dealing with taxes, social security, etc...

I REALLY appreciate these forums and advice.

Alan

[scott h]

So I understand...you then pay your bills there in Philippines from your acct there. The checks you deposit in it are from your US acct.... Do you keep a US address?? I am able to, if needed...am assuming (?) it can be helpful when dealing with taxes, social security, etc...

 

The only bill we have in the states is our Credit Card the wife pays that electronically. My pension allows me to live where ever I want to (no state residency requirements. Don't know if SSDI has requirements others might be able to tell you) . So I changed my Home of Record to the Philippines so I do not have to pay California income tax, only federal. I gave the bank my sisters address for anything that needs to be sent.

 

Yes I deposit checks into my Philippine bank account drawn on my USA bank. Just takes 3-4 weeks to clear and the cash is available.

[chris49]

Yes I deposit checks into my Philippine bank account drawn on my USA bank. Just takes 3-4 weeks to clear and the cash is available.

It is quite easy on the other hand to have direct deposit with a local bank....BDO, BPI, Metro Bank as many forum members do.

Done through the US Embassy SS Section. By email they can verify your data (not 100% sure if it requires a personal visit or an appearance at an outpost.)They will send you a form to take to a local bank.

My SS and my wife's child allowance are due 3rd and 4th of the month. On that same day at around 11 AM we canget our money hand to hand at BDO, we may elect dollars or pesos or perhaps transfer to another one of our accounts. This is common and it beats the 4 week delay in cashing a check.

I'm a dual citizen US/Aussie, my wife is Filipina, but the kids allowance goes to her not me.