gamb00ler Posted September 15, 2018 Share Posted September 15, 2018 I've lived/worked in USA for 20+ years, but never became a citizen (green card). My Thai wife (of 20 years) and I will be moving to Chiang Mai in the early 2019. We are both 65+. We're starting our tax planning before leaving US. I have a 401k and I am not sure when I will start withdrawing from it. I also will receive an additional small pension from Canada. I have basically two options regarding USA taxation. I can arrange to be taxed as A) resident alien or B) non-resident alien. The Foreign Earned Income exemption won't apply as non of our income (pensions and investments) will qualify. Option A will result in my being taxed as if I still reside in US with a progressive tax rate schedule and I will certainly have to pay tax on 401k disbursements. Option B requires that I surrender my green card and write a letter telling US gov't that I'm abandoning my Permanent Resident status. I will then pay a fixed tax rate of 30%. Article 20, paragraph 1 of the Thai-US tax treaty implies that individual retirement account disbursements will be taxed in Thailand at 0% (according to USNews). I think that this is probably not true since my 401k contributions were pre-tax dollars. I'm not 100% clear about exemptions and deductions for this option. Here are my sources of expat tax info: https://money.usnews.com/money/blogs/on-retirement/2011/12/05/the-most-tax-friendly-places-to-retire-abroad https://www.irs.gov/publications/p519 (US tax guide for Aliens) https://www.irs.gov/pub/irs-trty/thaitech.pdf (Thailand-US tax treaty) Does anyone have knowledge or links to more accurate information? Thanks. Gamb00ler Link to comment
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