lanny

I downloaded the forms from the SSA website, completed them myself, called Manila for clarification, etc. I only used the US Consulate for mailing it to Manila. Manila was the first to inform me of the 40-hour per MONTH limit for working overseas for any amount, which cancels that entire month's check. http://ssa.gov/pubs/10137.html

After you reach full retirement age (FRA), you can work 149 hours per week if you wish. But between Aage 62 and FRA, they will send you forms to fill out. At least, they will if they know you are overseas. If you fail to send back the forms, they stop your check.

Do you understand that US Pensions payments made to non-resident aliens are subject to US withholding tax?

That is not quite true!

Social security payments to non-resident aliens are subject to a 30% withholding However, pensions from state government or private pension plans are not subject to US taxes. The US-Thai tax treaty says that only the country of RESIDENCE may tax such pensions. But, it also says that social security benefits are taxable only by the country making such payments.

Your monthly benefit is not affected by your marital status. The amount is based on your earnings history; adding a wife or dependent children will not increase the payment.

If your wife meets the requirements (explained in other posts) she may be entitled to 1/2 of your benefit. (This does not reduce the amount you receive.) Generally, however, unless your Thai wife lived with you in the US, she cannot draw SS benefits. She will not qualify for survivor benefits, either.

Answered my own question by calling the consulate directly it's 34.82.

That must be the current rate. Last year the baht was never worth as much as 34/1.

For years, I have always used the composite rate published by the Federal Reserve in January each year. I have seen this report posted on the bulletin board at American Citizens Service in the US embassy, too. For 2008, the Fed rate was 32.982

And if I remember correctly, after your automatic extension which requires no form because you are abroad, if you want additional time to file, you do not file the same form as those who were still in the US and are asking for a second extension. But the form numbers finally escape me. 2868, 2848...

No, you use the regular extension form (there is only one, now, Form 4868) but you must attach your statement. If you just send in the extension form in June, IRS will reject it.

If I'm not mistaken there is a form you need to file.

But yes the extension is automatic if you are abroad on April 15. No other strings attached.

Remember penalties & interest accrue from April 15 so it's best to be on time if posible.

No, that is not true! No form is required if you file by June 15; all that you need do is attach a statement that you are living abroad and are entitled to the automatic extension.

Unlike the normal extension, the automatic extension for expats is an extension of time to pay, as well as to file the return. Interest accrues from April 15 but there are no penalties.

This is only of importance if you owe money to IRS. If you have a refund, or a zero balance, IRS does not care when you file. Late filing and late payment penalties are a percentage of any balance due; if you don't owe anything, you have no penalty.

The moderators will not let me add my URL so I have to ask you to PM me. I am a CPA and preparation of US tax returns is what I do.

Whether or not you draw social security benefits has no effect on the Foreign Earned Income Exclusion. Ss benefits are not earned income and are not eligible for the exclusion. You have to be earning something outside the US, for work outside the US, to be able to exclude anything.

Ah yes, this is the root of the issue. I completely understand the definition of earned vs pension income. The FEIE allows me to exclude the majority of my U.S. earned income...the amount of which has a great deal to do with how much I am penalized when accepting SS benefits. Is that earned income amount affecting the SS calculation determined before or after the FEIE is applied?

The FEIE does not affect the ss benefit calculation. However, as mentioned in a couple of prior posts, the earnings limit is applied differently for foreign earnings. Generally, if you work abroad for more than 40 hours a month, you cannot draw ss benefits. If your benefits limits are applied under the regular rules, it is the earnings before the FEIE.

The FEIE is strictly a device for calculating the tax liability for a given income. It has no other purpose and is not related in any way to social security benefits or taxes.

The automatic extension to file (and pay) your taxes is just that. It is available to ANYONE who lives outside the US, there is no requirement that you have a place of business. All that is necessary is that you attach a statement to your return stating that you are eligible for the extra 60 days.

Thanks. I've sent the question to my US-based tax accountant to see how he responds. Even though I live here, I do not generate income in Thailand and do no business within these borders...it is all generated in the USA and paid by my US company directly into my USA bank account. So living in LOS should not make a difference. I am mainly curious to learn what effect if any the Foreign Earned Income Exclusion would have if I began taking SS benefits before I retire from my employment.

Whether or not you draw social security benefits has no effect on the Foreign Earned Income Exclusion. Ss benefits are not earned income and are not eligible for the exclusion. You have to be earning something outside the US, for work outside the US, to be able to exclude anything.

The rule for reduction in SS benefits IS different for those working outside the US.

If you are below your full retirement age and drawing SS benefits, the amount of that benefit is reduced if you earn (that is salary, etc.) more than $13,160 per year

However, if you are working outside the US, the way the benefit reduction is calculated is different. The maximum is not a dollar amount but the amount of work you do. Benefits are taken away if you work more than 40 hours PER MONTH! And, if you work less than 40 hours per month, you have to explain to the SSA why you work so little!

You don't say how old you are or where you come from. But, it seems to me that you are somewhat "out of it."

When I was a young man, high school diplomas were becoming so common that you needed a college degree to stand out. Somewhere along the line, though, that changed and college degrees became very common. So, you needed a masters degree to stand out.

In the US military, masters degrees are an essential to the promotion process. I have seen details showing that Air Force majors eligible to Lt Colonel needed masters degrees to make that move. In the year in question, all majors that were promoted had masters degrees; not all masters degrees got the promotion but none of the majors without the advanced degree were selected.

If you look at business, many top executives now have masters - an MBA is almost a prerequisite. Wall Street and the big banks are crowded with MBAs.

To answer your question, though, I admit to having and MBA. Got it many years ago, when it was not so common.

The same thing happened to me several years ago. Fortunately, my girlfriend was with me and she could talk to the police. We were shuffled off to various police boxes and stations and eventually wound up at the Tourist Police headquarters on Rajdamnoern. From the time of the loss to our arrival at headquarters was probably an hour or an hour and a half.

They had me write a list of everything in the wallet, copied that list to an official form, and then typed the list! But they did call SCB credit card office so I could report the fact that the card was stolen.

I needed copies of the official report to replace various cards, including the keycard to my apartment building! I also used that report to replace a US drivers' license and a credit card.

Of course, noting came of all this. I was out the money and had to deal with the problems of missing cards for weeks.

All US citizens and greencard holders are required to report their world-wide income each year. If they meet either the physical presence or the bona fide resident rules, they may exclude up to $90,000 each year. This is not automatic and they must file a US tax return to claim the exclusion.

To the extent that income is not excluded, US taxpayers may claim a credit for some portion (but not dollar for dollar) for taxes paid to another country. The US-Thai income tax treaty has a provision to this effect but the credit is actually from the Internal Revenue Code.

You imply that you are not a US citizen. If this is the case, the rules as to what income needs to be reported, etc. can become very complex. They generally are not a "do-it-yourself" project.

Miguel's is good, but Tacos & Salsa (owner is from Mexico City) right here in Bangkok is better. Not worth going to Chiang Mai just for Miguel's (American owner) but if you find yourself there, there's no real competition.

This is a new one to me. I like Mexican food and miss the old Tia Maria. I've never heard of Tacos &Salsa; where is it located? And, how to get there?

I can't speak of Thai taxes but, if you are a US citizen or greencard holder, there are issues with IRS. The rent received will be income on your US tax return; the related deductions (including depreciation) can be deducted.

If you are a US citizen and have more than a minimum amount of income, you are required to file a US income tax return. If your wife is Thai, you CAN, but are not required, to file a joint return. She will need a taxpayer identification number (TIN) but that can be applied for with the return.

This is not a simple decision! There are downsides to including her on your return. For one thing, by filing the joint return, you are electing to include your wife's world-wide income on the return. Since only EARNED income (salaries, wages, etc.) qualifies for the foreign exclusion, this can make otherwise non-taxable income subject to US tax. Once you have made the election, you are bound by it in future years.

Also, remember that the foreign exclusion is not automatic. You must file a return and provide certain information to IRS to claim the exclusion.

Finally, to the extent you do not claim the exclusion, you can take a credit for any Thai taxes paid on the non-excluded income.

I have had good experiences with Tony Leather, on Surawong, more or less opposite Jim Thompson. All the shoes they have made for me were leather, so I am not sure they can help you. They have always been helpful, so you might give them a try.

I have been using Khun Ning in the Amarin Plaza (the old Sogo) on Ploenchit for the 8 years I've lived and working here. You can get a manicure and pedicure as well as a shampoo for about 500 baht. I've never had a complaint about their service.

I posted this question in the food forum a few weeks ago. Nobody gave me a definite answer, either. However, one reply suggested that maybe Foodland had them. I haven't verified that, though.

I have some recipes for vinegar pie and want to try some of them. But, I do not want to make my own pie crusts. Is there anywhere in BKK to buy pie shells? Frozen or fresh?

Why do people still insist the current government was elected by a majority? Sure, the PPP got more votes than the other parties but that is because they BOUGHT the votes in Isaan! Until this country finds a way to block vote buying, new elections are not the solution -- the results will be the same.

Maybe a coup and another period of military rule will give the country time to insure truly free elections.

Once you reach the minimum 40 credits, it does not make sense to continue to contribute to the social security system if you are not required to. Long-term, you can make better returns investing on your own.

Seems to be very true.

I have the 40 credits already, so just out of curiosity I download the SSA's benefit calculator software from http://www.ssa.gov/OACT/anypia/anypia.html and put my numbers into it and then checked to see what effect on my benefits it would have if I worked next year outside the US and paid nothing into SSA versus worked inside the US and paid the maximum annual amount into SSA (US$6324). Under that scenario the company that I worked for would also be kicking in $6324, making the total contribution $12,648. It looks like paying in that extra $12,648 would cause my benefits to increase by an $300 per year if I started taking payments when I reached 62 years old. Under present rules, that $300 per year would be adjusted for inflation each year, put still it looks much more like a tax than an investment.

You don't say how old you are or how many years you would have to wait to collect that additional $300 per year. However, once you start to collect, it will take over 42 years to recover that $12648 "investment." Even if you only factor in your own contributions ($6348) it would still take more than 21 years. You life expectancy can't be long enough to recoup the entire $12,648.

You receive Social Security credits for work in Thailand in specific circumstances: If you work for a US company your income is reported on Form W-2 and FICA taxes are withheld; If you work for yourself (are self-employed) you pay the self-employment tax when you file your US tax return. If you work for a Thai company, or any other non-US employer, your earnings are generally not subject to US social security taxes. The rule is that you are subject to the US tax if you entered in to your employment agreement in the US; if you entered the agreement outside the US, the earnings are not subject to the tax. In the event that you are covered, you pay the tax with your tax return, just as if you were self-employed. I don't know how this rule is enforced; I've never seen anyone admit they entered a contract in the US.

Once you reach the minimum 40 credits, it does not make sense to continue to contribute to the social security system if you are not required to. Long-term, you can make better returns investing on your own. It can make sense to stay in the system if you have not attained the necessary 40 credits; however, once you start you have to continue indefinitely.

I bought one of the wrist type monitors earlier this year, for just 2,800 baht. My doctor had me bring it to his office and we checked against his reading. I don't recall the numbers but they were close; within the range you would expect when taking consecutive readings. The doctor was satisfied with the devices accuracy, anyway.

I just asked at my regular pharmacy at Maneeya Center, on Ploenchit. They had it in stock.

Try Tony Leather on Suriwong Road, opposite Jim Thompson