US Charles Schwab Residency?

[edwarda909]

On 3/3/2025 at 2:21 PM, kimothai said:

Forgot to mention: Security codes/OTPs are sent directly to your Thai number. 

If you have a ipad with a stylus they will accept  your signature, but not a copy and paste

[Tookea]

On 3/2/2025 at 2:59 PM, gamb00ler said:

 

Or if you want an actual US based mobile number, buy an UltraMobile Pay/Go sim on eBay (~15$).  Have a US based friend put it in a phone and connect to the T-mobile network to initialize the sim.  Have your US accomplice mail the sim to you in Thailand.  Configure your UltraMobile sim to use WiFi only for SMS and calls .... and Bob's your uncle.

 

I use a iPhone with esim capability.  My Thai service is on the esim and the UM uses the sim slot.   When I call someone the iPhone automatically uses the sim that was used during the last connection to the same contact.  You can also specify in your contact list which sim to use for each contact.

 

The UM service costs about $3.18 per month if you do not exceed 100 minutes or SMS using WiFi connection.

His point was that he didn't want to keep skirting around the rules. 

[RocketDog]

On 3/3/2025 at 4:21 AM, Everyman said:

Have you ever heard the expression “no good deed goes unpunished?”

 

I think you’re making a hassle for yourself for no good reason.

That's my reaction as well. If you go asking questions and looking for trouble someone will accommodate you.

 

I'll assume the OP has his reasons and move on.

 

I have studied the Thai tax rules, don't owe tax, so I keep records every year to prove such and I won't go looking for a TIN number.

 

Note that those who have and posted here were told the same thing or met with bewilderment from the tax office.

 

Let sleeping authorities alone.

[NoDisplayName]

On 3/2/2025 at 2:19 PM, BKKKevin said:

This thread is for US citizens who have a Charles Schwab Brokerage account.

 

I am considering notifying Charles Schwab that I live in Thailand.

My reason is long term I don’t want to keep skirting the rules and use a family members address.

 

I would like to hear peoples experiences at the ramification of such a change?

If you made the change, how did you go about it?

 

I also have a Fidelity account that I slipped up about 10 years ago and told them I lived here….

The only thing that happened was I was restricted in what I could invest in… 

 

I was hoping it would be the same with Charles Schwab… But have read where they closed people’s accounts…

 

I also have Fidelity.  About ten years ago, my debit card withdrawals and/or transfers to Thailand alerted them I was out of the US.  They wanted a US utility bill to prove residence.  Since then I am not allowed to purchase US-registered mutual funds.  I could keep any already in the account, but could not add to holdings.

 

When 2FA went into effect, there were some difficulties, but I've had Fidelity add my Thai cellphone number to the account and now can receive OTP codes.  I've also removed "enhanced" security so that OTP is not required at each login.

 

Last month opened Schwab accounts for myself and the wife, using our Thai addresses.  Same limitation - no purchase of US-registered mutual funds.

 

As for Schwab, the $25K opening balance and minimum balance requirements have been cancelled.  Schwab accepts foreign cell numbers for OTP codes.

[TallGuyJohninBKK]

2 hours ago, NoDisplayName said:

Last month opened Schwab accounts for myself and the wife, using our Thai addresses.  Same limitation - no purchase of US-registered mutual funds.

 

So, were those new accounts for you and your wife Schwab International accounts reporting your Thai addresses, OR,  Schwab U.S. accounts with the added restriction against being able to purchase any U.S. mutual funds?

[jas007]

I have this problem now.  I have several brokerage accounts, so my US Schwab account is not an urgent mater.  I have stocks in it, but they're long term holdings and I wasn't really planning on selling any of those stocks, anyway, so I've been lazy, I guess, and I've put it off. 

 

Before Schwab, it was a T.D. Ameritrade account.  When it was switched over to a Schwab account, I got all the usual instructions about how to log into my new Schwab account.  So, one weekend, I did.  It worked fine, but then by Monday morning I was no longer able to log in without calling them first.  Or maybe it was a 2FA problem?  Anyway, I decided I needed to switch it over to a Schwab International account and I called them, but no one ever called me back. Since I didn't really care too much one way or the other, I sort of forgot about it.

 

Maybe I should start establishing accounts I can access from Thailand without too much difficulty.

 

I like the idea of the State Department Federal Credit Union.  I can do that any time, and I can direct some or all of my government pension into that account.  Having that might make the brokerage thing easier.  And a credit card?   

[NoDisplayName]

2 hours ago, TallGuyJohninBKK said:

 

So, were those new accounts for you and your wife Schwab International accounts reporting your Thai addresses, OR,  Schwab U.S. accounts with the added restriction against being able to purchase any U.S. mutual funds?

 

International accounts, using our Thai address and our Thai cellphone numbers.  I requested and received debit card and checks on my account.

 

An additional restriction on the international accounts is no beneficiaries.

 

I've set up push/pull link to my Fidelity account, my credit union and Wise.  Also have a standing order with Schwab to transfer cash (no shares) one way to the wife's account.  All of this can now be done online without calling a rep.

[TallGuyJohninBKK]

3 hours ago, NoDisplayName said:

An additional restriction on the international accounts is no beneficiaries.

 

That's a curious restriction. 

 

In your contacts with Schwab, did you get any info on how, for their intl accounts, they would handle a situation where the accountholder has passed away, and there's no beneficiary allowed to be listed on the account?

 

[NoDisplayName]

14 hours ago, TallGuyJohninBKK said:

 

That's a curious restriction. 

 

In your contacts with Schwab, did you get any info on how, for their intl accounts, they would handle a situation where the accountholder has passed away, and there's no beneficiary allowed to be listed on the account?

 

 

I must have asked that somewhere along the line, but I don't recall at the moment.....

 

Fidelity does have beneficiaries, and the DIY Thai will should be acceptable, but additional work is required.  If a US-based lawyer isn't handling probate, then the wife must do a final tax return and apply for a tax clearance certificate, which can take up to a year for the IRS to produce.

 

As for Schwab, my account is mainly to pass gifts through to the wife, so shouldn't have much in the way of assets.  My notes will have PW and ID, so she could simply use the standing order to transfer any cash to her account.  She can either send a SWIFT from her account or we link to a Wise account for her.  I haven't considered I might outlast, but I suppose I must prepare for that eventuality, as well.

[JimGant]

On 3/2/2025 at 2:19 PM, BKKKevin said:

I am considering notifying Charles Schwab that I live in Thailand.

My reason is long term I don’t want to keep skirting the rules and use a family members address.

 

As I recall, I just went online to my Schwab account and changed both my legal and my mailing address to my Thai address. My account is an IRA account, not brokerage. It holds stock mutual funds, and the only activity is a once per year sale to meet RMD requirements. This is all done online. Don't know if I could 'trade', i.e., sell a mutual fund and buy a new one with the proceeds.... But, I have no plans to do so.

 

Unlike an international brokerage account, my US IRA account allows for beneficiaries. Which is an absolute requirement, since I have no US Will, as I don't need one -- all my US assets are financial, thus pass on via beneficiary or POD designations.

 

If you're an active trader, I'm sure you'd have to switch to a Schwab international account, if you decided to tell them where you really live.

[Chang555]

Hey everyone, just wanted to share a quick update in case it helps someone!

I'm in the process of converting my regular Schwab brokerage account into a Schwab One International account. I also requested a checking account and debit card as part of the setup. I mailed all the required documents yesterday—hoping everything goes smoothly!

I used this form: international.schwab.com/resource/update-schwab-one-international-account

For 2FA, I use Thinkorswim and the TextPlus app. TextPlus gives you a U.S. phone number for just $1 per year. It works great over Wi-Fi for receiving voice calls and messages, which is useful because Schwab sometimes sends verification codes via an automated voice call when you choose the “Schwab will call” option. Just a heads-up: it doesn’t support regular SMS text messages, but voice works fine. Definitely a handy workaround if you're outside the U.S.

Also, a nice update—starting April 2025, Schwab no longer requires a minimum deposit for international accounts. You can open one with any amount you’re comfortable with. They used to require $25,000, but that’s no longer the case.
(Source: brokerchooser.com)

Hope this helps someone who's looking into it!

[Chang555]

UPDATE: I’m happy to share that I’ve successfully converted my account to a Schwab One International account! The process was smooth and took about 18 days to complete. I now have a linked checking account and debit card. They shipped the check, and I believe the debit card is included as well.

 

What I really like about this setup is that the website and app remain exactly the same as before, with the added bonus of being able to manage my new checking account and debit card directly from the same interface.

 

When I initially requested a checking account, they set me up with a Schwab One® brokerage account with checkwriting and a Schwab One VISA® Debit Card. This is similar to a regular checking account, with the added benefit that I can write checks and use the debit card for withdrawals. Since I’m an active day trader, being able to withdraw cash from my cash account using the debit card is perfect for my needs. The downside is that if you want to deposit cash, you’ll have to do it through a wire transfer to your account.

 

Just a heads-up—looks like they now offer the option to use the Symantec VIP app for 2FA, so you don’t need to use your phone number anymore!

 

If you’re thinking about converting to a Schwab One International account, I’d say it’s definitely worth considering. The process was easy, and the features seem like a great fit for anyone in a similar situation to mine. Highly recommend!

[khaepmu]

On 3/2/2025 at 2:33 PM, gargamon said:

You can get a Schwab international brokerage account if you live in Thailand. US citizenship not necessary. 25k minimum. You can get their wonderful ATM card with no foreign transaction fee and they pay the 250 baht foreign ATM fee. I'm sure they would convert your account.

 

They are quite strict in tax withholdings. I only keep roth stuff there do no withholdings.

What do you mean "they are quite strict in tax withholdings". 

[TallGuyJohninBKK]

Just curious... if anyone here has asked and gotten the answer:

 

Re the Schwab international brokerage accounts, assuming the accountholder is listed as residing in Thailand, how would Schwab handle estate planning / succession for the account, and in what country jurisdiction-wise, given that apparently the international accounts don't allow for POD beneficiaries? And Thailand has no such POD process in its civil law framework.

 

 

 

[NoDisplayName]

On 5/7/2025 at 1:10 PM, Chang555 said:

The downside is that if you want to deposit cash, you’ll have to do it through a wire transfer to your account.

 

You can link to other US banks or credit unions or brokerages where you have accounts, and use the no-fee ACH transfer.  I set up my Schwab International account to push/pull with a broker, a credit uniion, and Wise, all done online with no calls or authorization required.

 

On 4/10/2025 at 7:44 AM, Chang555 said:

because Schwab sometimes sends verification codes via an automated voice call when you choose the “Schwab will call” option. Just a heads-up: it doesn’t support regular SMS text messages, but voice works fine. Definitely a handy workaround if you're outside the U.S.

 

My Schwab account is setup with my Thai True number.  I've received both SMS and voice calls from Schwab.

[gargamon]

6 hours ago, khaepmu said:

What do you mean "they are quite strict in tax withholdings". 

You sell something, they deduct the taxes.

You get dividends, they deduct the taxes.

 

If you may owe tax on any transaction, they will deduct it. It's quite a contrast with a US vanguard account where they don't deduct anything and let you pay it when you do your taxes.

 

The thing I really don't like is that when they tax your dividends, they deduct the funds from your account, which may be accumulating tax free, and don't let you use funds from outside the account. They may have a way to do that, but I just moved that money away from Schwab.

[PeterA]

On 3/20/2025 at 1:55 PM, NoDisplayName said:

 

I also have Fidelity.  About ten years ago, my debit card withdrawals and/or transfers to Thailand alerted them I was out of the US.  They wanted a US utility bill to prove residence.  Since then I am not allowed to purchase US-registered mutual funds.  I could keep any already in the account, but could not add to holdings.

 

When 2FA went into effect, there were some difficulties, but I've had Fidelity add my Thai cellphone number to the account and now can receive OTP codes.  I've also removed "enhanced" security so that OTP is not required at each login.

 

Last month opened Schwab accounts for myself and the wife, using our Thai addresses.  Same limitation - no purchase of US-registered mutual funds.

 

As for Schwab, the $25K opening balance and minimum balance requirements have been cancelled.  Schwab accepts foreign cell numbers for OTP codes.

I have had a Schwab brokerage acct. for 6 years or so. I have my address as being  in the US at a relatives house. A week ago I wanted to add my Thai wife to the account, and change my mailing address to Thailand. So far, no can do. I tried to get a savings account, could not do that either. I do have my Thai phone  in there, and they are ok with that. I wanted to make my wife the beneficiary, but you can't use a foreign address. My bet is, that it is a USA govt. requirement, not just Schwab. I have a regular bank acct in my home are in the US, and I can't use a Thai address or phone there. I need to find another way to get the wife as a beneficiary. 

[NoDisplayName]

18 hours ago, gargamon said:

You sell something, they deduct the taxes.

You get dividends, they deduct the taxes.

 

If you may owe tax on any transaction, they will deduct it. It's quite a contrast with a US vanguard account where they don't deduct anything and let you pay it when you do your taxes.

 

The thing I really don't like is that when they tax your dividends, they deduct the funds from your account, which may be accumulating tax free, and don't let you use funds from outside the account. They may have a way to do that, but I just moved that money away from Schwab.

 

You're comparing a US domestic account (Vanguard) with an international account (Schwab).  Different animals.

 

There are also differences depending on account ownership.

 

Schwab International will withhold taxes on dividends and interest for non-US account holders, at a rate set by the relevant DTA, sent directly to the IRS.  No tax returns are required for these account holders, and refunds are not possible.

 

The rate is currently 15% for Thai citizens (10% for Chinese).  There is NO tax on capital gains for non-resident aliens.  Holding non-dividend paying ETF's results in zero tax to the US. 

 

Schwab international accounts do not withhold tax for US citizens who have submitted the correct W-9 and personal identification.  Tax returns will be required for these lucky folks.

[Yumthai]

51 minutes ago, NoDisplayName said:

Holding non-dividend paying ETF's results in zero tax to the US. 

For non-US persons Thai residents there is however the quite substantial US estate tax (40% beyond $60K in US situs assets) issue that could be concerning for people who are eager to let something to their heirs.

[NoDisplayName]

10 minutes ago, Yumthai said:

For non-US persons Thai residents there is however the quite substantial US estate tax (40% beyond $60K in US situs assets) issue that could be concerning for people who are eager to let something to their heirs.

 

No understand.  Who is passing and who is inheriting?

 

International accounts registered to a non-US person wouldn't be affected by a US estate tax?

 

All taxes due on interest and dividends were collected at source, and capital gains are not taxed per DTA.  Only tax due would be on remittances to Thailand.

 

I'm no expert, so...........

 

 

[Thailand J]

International account registered to non-US person is subject to US estate tax because the investment is in US.

The exemption is only $60K. Please see IRS form 706NA and the instruction.

For US citizens, the exemption is  about $14M.

 

 

 

[TallGuyJohninBKK]

3 hours ago, NoDisplayName said:

Schwab International will withhold taxes on dividends and interest for non-US account holders, at a rate set by the relevant DTA, sent directly to the IRS.  No tax returns are required for these account holders, and refunds are not possible.

The rate is currently 15% for Thai citizens (10% for Chinese).  There is NO tax on capital gains for non-resident aliens.  Holding non-dividend paying ETF's results in zero tax to the US. 

 

I'm trying to follow the sum of what you're saying above...

 

I've been thinking about having my Thai wife open a Schwab intl account, which ultimately should ease her inheriting the Schwab U.S. accounts that I have with her as my POD beneficiary.

 

But one fear I had about that was the prospect of landing her, as a Thai citizen and resident, in the complicated and sometimes arcane world of U.S. IRS taxation. However, if I'm understanding you above, you're saying a Thai citizen NRA for U.S. purposes would have NO U.S. tax filing obligation based on a Schwab Intl account, and Schwab would simply automatically take out the DTA mandated withholding, and she wouldn't have any U.S. tax filing headaches.

 

Is that correct as best as you understand it?

 

[NoDisplayName]

14 minutes ago, TallGuyJohninBKK said:

 

I'm trying to follow the sum of what you're saying above...

 

I've been thinking about having my Thai wife open a Schwab intl account, which ultimately should ease her inheriting the Schwab U.S. accounts that I have with her as my POD beneficiary.

 

But one fear I had about that was the prospect of landing her, as a Thai citizen and resident, in the complicated and sometimes arcane world of U.S. IRS taxation. However, if I'm understanding you above, you're saying a Thai citizen NRA for U.S. purposes would have NO U.S. tax filing obligation based on a Schwab Intl account, and Schwab would simply automatically take out the DTA mandated withholding, and she wouldn't have any U.S. tax filing headaches.

 

Is that correct as best as you understand it?

 

 

Correctamundo!

 

Wifi and I both have Schwab International.

 

I fill out W-9 and show foreign residence.  I can buy/sell US ETF's and stocks but cannot purchase US-registered mutual funds.  No taxes withheld.  I use my 1099 when I file my 1040.  I pay tax in April on interest, dividends, and capital gains.  Capital losses offset gains.

 

Wifi fills out a W8-BEN and shows foreign residence.  She has same purchase restriction on mutual funds.  Taxes withheld (15% per DTA) on interest and dividends.  NO tax on capital gains.  Withheld tax automatically reported/sent to IRS.  No tax return filing requirements.  Her 1099 would be for recordkeeping only.  (I assume this means losses cannot offset gains, but cannot confirm.)

 

I have a link set up with my other broker, my credit union and Wise.  I can push/pull online by EFT from the Schwab website.

 

I also have a standing order set up where I can transfer cash to wifi's account.  (It's possible to set up moving cash and shares in both directions.)

 

I can sell MY holdings and pay capital gains, then gift proceeds to the wifi.  She can invest in non-dividend paying ETF's, and when my remains have cooled, she can remit to Thailand as needed, with only her capital gains being assessable.

 

 

[NoDisplayName]

30 minutes ago, TallGuyJohninBKK said:

But one fear I had about that was the prospect of landing her, as a Thai citizen and resident, in the complicated and sometimes arcane world of U.S. IRS taxation.

 

My plan is to gift a million baht per year to the wifi, staying well within IRS gift-giving limits.

 

She's listed as beneficiary on my domestic brokerage, but much paperwork will be needed.  She'll have to do a final tax return, and request a tax clearance certificate from the IRS.  IRS can take up to a year to produce the certificate required to release funds.  I think that can be avoided if a US-based lawyer handles the filings.

[TallGuyJohninBKK]

18 minutes ago, NoDisplayName said:

Wifi fills out a W8-BEN and shows foreign residence.  She has same purchase restriction on mutual funds.  Taxes withheld (15% per DTA) on interest and dividends.  NO tax on capital gains.  Withheld tax automatically reported/sent to IRS.  No tax return filing requirements.  Her 1099 would be for recordkeeping only.  (I assume this means losses cannot offset gains, but cannot confirm.)

 

Following thru on your scenario above, however, if my Thai wife had a Schwab Intl account with U.S. holdings that produced interest or dividends, then she would be earning U.S. source income. Wouldn't that trigger a U.S. tax filing obligation on her part?

 

Right now, I do married filing separately, file my own individual U.S. tax return, and tell the U.S. my wife doesn't have a U.S. tax filing obligation because she has no U.S. source income. But she does have a pretty well paid Thai job, and the last thing I want to do is trigger the U.S. IRS coming to take their cut of that alongside the Thai Revenue Dept.

 

[TallGuyJohninBKK]

3 hours ago, NoDisplayName said:

International accounts registered to a non-US person wouldn't be affected by a US estate tax?

 

I think the gift tax scenario @Yumthai is talking about is the up to 40% U.S. gift tax that comes into play where a NRA (in this case Thai spouse) inherits U.S. brokerage assets from an American spouse accountholder.

 

[Yumthai]

3 minutes ago, TallGuyJohninBKK said:

I think the gift tax scenario @Yumthai is talking about is the up to 40% U.S. gift tax that comes into play where a NRA (in this case Thai spouse) inherits U.S. brokerage assets from an American spouse accountholder.

What I mean is US situs assets held (through for instance a brokerage account) by a Thai spouse or any US non resident alien will be subject to significant US estate tax when she/he passes.

[NoDisplayName]

12 minutes ago, TallGuyJohninBKK said:

 

Following thru on your scenario above, however, if my Thai wife had a Schwab Intl account with U.S. holdings that produced interest or dividends, then she would be earning U.S. source income. Wouldn't that trigger a U.S. tax filing obligation on her part?

 

Right now, I do married filing separately, file my own individual U.S. tax return, and tell the U.S. my wife doesn't have a U.S. tax filing obligation because she has no U.S. source income. But she does have a pretty well paid Thai job, and the last thing I want to do is trigger the U.S. IRS coming to take their cut of that alongside the Thai Revenue Dept.

 

 

Well, yeah.  That's US-source income by a non-resident alien.  Taxed at source.  Schwab withholds the tax, sends it to the IRS and reports by the TIN on file.  No filing required on her part.

 

Who must file

If you are any of the following, you must file a return:

1. A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during the year.
2. A nonresident alien individual who is not engaged in a trade or business in the United States and has U.S. income on which the tax liability was not satisfied by the withholding of tax at the source.

https://www.irs.gov/individuals/international-taxpayers/taxation-of-nonresident-aliens

[NoDisplayName]

2 minutes ago, Yumthai said:

What I mean is US situs assets held (through for instance a brokerage account) by a Thai spouse or any US non resident alien will be subject to significant US estate tax when she/he passes.

 

Unclear.

 

You mean a US person inheriting a US brokerage account from their non-resident Thai spouse?

[Yumthai]

6 minutes ago, NoDisplayName said:

Unclear.

 

You mean a US person inheriting a US brokerage account from their non-resident Thai spouse?

When your Thai wife passes her US situs assets (for instance US stocks/ETFs, cash held in a US brokerage account,...) will be subject to huge US estate tax.