Long-term American Expats In Los And Tax Returns

[Jingthing]

Well, I already qualify for ss. I do wonder if you were off the radar for 10 years (legitimately not filing because not needing to file) whether they would write you as a non-existant.

[PeaceBlondie]

Well, I already qualify for ss. I do wonder if you were off the radar for 10 years (legitimately not filing because not needing to file) whether they would write you as a non-existant.

No, Jingthing, as I understand SS retirement provisions, they don't write you off. You just get goose-eggs (zero) for the years you have no income. Then they compute your average wage (adjusted for inflation in each year) over the 35 years with the highest wages. If you have zeros in some of those 35 years, it drags your average way down. Then they compute 90% of that, and it's your annual SS benefit.

"Being eligible" or being "qualified" for SS benefits requires 40 quarters of coverage. However, there is no minimum pension, so if those 35 years averaged and multiplied times 90% equals $240 per year, your monthly check at full retirement age will be $20 per year. Much less if you retire at age 62.

[johnnynmonic]

So it appears I never did nor don't have to file as I am head of a household (son has American passport and will have his SS on its way as soon as I remember to get to the post office) which brings my threshold higher. I don't/have never made more than 10,000 USD in any year that I've been here (equal to about 450,000 baht when I first came...and 330,000 abouts now !!!)

@Gumball, 'if I do owe something???' There's no question about it in my mind, if the IRS ever tried to say I owe them taxes from my time in Thailand, it would call for me to write a thoughtful hip hop song about American pride with references to the Boston tea party and all such other significant events that have made me a proud American...But in the event that everything I have said is true, than the IRS says I'm not required. Like I said, if they want to prove I am actually not way under the US poverty line and under the tax exemption limit...then they'd be up for disappointment.

The thing is, I don't intend or wish to be taxed for actually going through with filing backtaxes, which according to the rates mentioned, looks like I was never required to file in the first place so I'm not going to pay some CPA or buy some program or pay late penalty fees for filing something that the law says I don't have to file. Though if I do choose to keep this stance, than I will need to prepare a letter explaining my reasons for not filing taxes, which would probably be best to reference school transcripts, bank statements, employment salary letters and pay stubs that I have collected over the years...or would I be better off not providing any such references and just the letter or just doing nothing or ???

Thanks fellow Yanks

Ok, I got it that certain folks dont have to file. IRS won't prosecute poor folks like us. But will we get socked by SS for not paying into that?

[PeaceBlondie]

Ok, I got it that certain folks dont have to file. IRS won't prosecute poor folks like us. But will we get socked by SS for not paying into that?

If you are not required to file a tax return, that means several things, including,

A. Your total income does not meet the filing requirements.

B. Your net profit from self-employment does not meet the filing requirements, so you are not liable for paying any SE tax.

If you had wages covered by Social Security (on which you and your employer would both have paid 6.2% FICA and 1.45% Medicare tax), you should receive your proper accounting for social security wage earnings, without your filing.

It is only unreported Self Employment earnings and tax, which would hurt you because you would have no SS credit for paying your SE tax.

I hope that answers your question.