Us Social Security

[BEENTHEREDONETHAT]

For those of you receiving US social security. Starting in January you should receive a 5.8% increase in your benefits... .......Should equate to a few more baht to get along on. I've added the baht bit to make it Thailand related.

[Wrong Turn]

For those of you receiving US social security. Starting in January you should receive a 5.8% increase in your benefits... .......Should equate to a few more baht to get along on. I've added the baht bit to make it Thailand related.

I know there are annual COLAS with Social Security, but I didn't know the government calculated inflation rate (and increase for SS) was 5.8%.

That is a large increase.

Inflation is that high in the US?

[OriginalPoster]

For those of you receiving US social security. Starting in January you should receive a 5.8% increase in your benefits... .......Should equate to a few more baht to get along on. I've added the baht bit to make it Thailand related.

I know there are annual COLAS with Social Security, but I didn't know the government calculated inflation rate (and increase for SS) was 5.8%.

That is a large increase.

Inflation is that high in the US?

Yes, over the period of time on which SS cola adjustments are calculated upon. Likewise, for inflation adjusted Savings Bonds the inflation adder (the percent of interest that they add above the base interest rate to account for inflation) starting in Novemeber is 4.9%.

[PeaceBlondie]

Other Americans retired on military, federal civil service, or veterans benefits can expect similar COLA's, but I doubt it will be as high as the SS COLA. Medical premiums may increase more, but it is foolish to pay for SS Medicare if you live abroad, unless you need Tricare.

[BEENTHEREDONETHAT]

If you would like more details on the cola check out

http://www.ssa.gov/cola/colafacts2009.htm

[Lopburi99]

Other Americans retired on military, federal civil service, or veterans benefits can expect similar COLA's, but I doubt it will be as high as the SS COLA. Medical premiums may increase more, but it is foolish to pay for SS Medicare if you live abroad, unless you need Tricare.

Great news on that 5.8% - more than I expected!

Is that right PB? I haven't looked into it in detail yet, but due to my disability Medicare will become available for me (at only 62) next year. I was thinking that Medicare for $96 (+ increase) monthly may be worth it in case I develop something nasty while here in which case I could return to the states for treatment. I am worried the new health insurance I am about to get here will be so full of exempted pre-existing conditions that it may be almost worthless to me.

Edited October 31, 2008 by Lopburi99

[Jingthing]

If you need to repatriate I believe you can sign up for Medicare after you move back to the US, but it would take some time to apply and get in the system. In other words, not much use if you needed an emergency medical evacuation to the US.

Apologies for the political injection, but there is a small movement to cover Americans abroad in the medicare system. Of course, with the economy in the tank and out of sight/out of mind being prevalent, it ain't going anywhere. I wonder if maybe in a second Obama term and the aging population and millions of retired Americans in more visible places like Mexico, that this issue might entertain a new chance, simply based on fairness and a new agenda to cover all Americans for medical access.

Edited October 31, 2008 by Jingthing

[PennyFarthing123]

I don't know how long it takes to get back into the medicare system after you have opted out of it, but I do know that you are charged an additional 10% per year that you have not had coverage.

[Lopburi99]

If you need to repatriate I believe you can sign up for Medicare after you move back to the US, but it would take some time to apply and get in the system. In other words, not much use if you needed an emergency medical evacuation to the US.

I understand. I was going to plan to visit my daughter in the states about the time the Medicare application would need to be placed. I believe I read my Medicare would stay in effect even though I live here, but of course I would need to return for treatment/coverage.

[Jingthing]

I don't know how long it takes to get back into the medicare system after you have opted out of it, but I do know that you are charged an additional 10% per year that you have not had coverage.

Not sure about that details, but I have also heard something to that effect. Long term expats would have to look at themselves in the mirror and consider the chances of ever going back, and do a risk/reward calculation.

[Lopburi99]

If you need to repatriate I believe you can sign up for Medicare after you move back to the US, but it would take some time to apply and get in the system. In other words, not much use if you needed an emergency medical evacuation to the US.

Apologies for the political injection, but there is a small movement to cover Americans abroad in the medicare system. Of course, with the economy in the tank and out of sight/out of mind being prevalent, it ain't going anywhere. I wonder if maybe in a second Obama term and the aging population and millions of retired Americans in more visible places like Mexico, that this issue might entertain a new chance, simply based on fairness and a new agenda to cover all Americans for medical access.

Very interesting JT. Thanks.

Edited October 31, 2008 by Lopburi99

[Heng]

Sweet news (for my folks anyway). Like getting two free pairs of Dr. Scholls to wear a month.

[Lopburi99]

Sweet news (for my folks anyway). Like getting two free pairs of Dr. Scholls to wear a month.

It pays for almost 1/3 of my new car payment!

[OriginalPoster]

Apologies for the political injection, but there is a small movement to cover Americans abroad in the medicare system. Of course, with the economy in the tank and out of sight/out of mind being prevalent, it ain't going anywhere. I wonder if maybe in a second Obama term and the aging population and millions of retired Americans in more visible places like Mexico, that this issue might entertain a new chance, simply based on fairness and a new agenda to cover all Americans for medical access.

Judging by the way tax treatment of expats has gone over the years, I'd say that you are dreaming. Overseas Americans simply do not have any voting clout. We all vote in different states and our numbers are too small within each state, so never can we expect to be seen as swing voters. Maybe Obama really is the new Messiah, but I doubt that he's going to go out on a limb for a "voting block" that is not only non-influential and non-organized but who decided to leave the US to boot.

Edited October 31, 2008 by OriginalPoster

[Jingthing]

I'd say that you are dreaming.

To be clear, if you actually bothered to read what I wrote, I thought I conveyed my meaning that this is a remote chance. However, there is such a small movement. And I did say in a SECOND Obama term assuming alot of lucky things, like an improved economy, universal health care access for all Americans within our borders, etc. At that point, it would be now or never, probably never but clearly the only chance in our lifetimes. There are legislators in the house and the senate who have volunteered to represent expat Amerians, you can easily find them if you look.

BTW, there are fiscal arguments for extending Medicare to Americans abroad. It would serve as an additional financial incentive for more Americans to retire abroad and the reimbursement cost for these Americans would be less than if they stayed stateside. Now the cost is zero, but some are trying to sell the idea of ENCOURAGING Americans to move, to save money, and one of the biggest reasons for older Americans not to expatriate is lack of international medicare coverage.

If you meant this as some kind of dig at Obama, that is your prerogative, but if you think I am dreaming of this happening someday in a second Obama term, what word would you use for someone who thinks this may happen in a Palin term? Is there a smaller number than zero percent?

Edited October 31, 2008 by Jingthing

[OriginalPoster]

I'd say that you are dreaming.

To be clear, if you actually bothered to read what I wrote, I thought I conveyed my meaning that this is a remote chance. However, there is such a small movement. And I did say in a SECOND Obama term assuming alot of lucky things, like an improved economy, universal health care access for all Americans within our borders, etc. At that point, it would be now or never, probably never but clearly the only chance in our lifetimes. There are legislators in the house and the senate who have volunteered to represent expat Amerians, you can easily find them if you look.

BTW, there are fiscal arguments for extending Medicare to Americans abroad. It would serve as an additional financial incentive for more Americans to retire abroad and the reimbursement cost for these Americans would be less than if they stayed stateside. Now the cost is zero, but some are trying to sell the idea of ENCOURAGING Americans to move, to save money, and one of the biggest reasons for older Americans not to expatriate is lack of international medicare coverage.

If you meant this as some kind of dig at Obama, that is your prerogative, but if you think I am dreaming of this happening someday in a second Obama term, what word would you use for someone who thinks this may happen in a Palin term? Is there a smaller number than zero percent?

Why the vitriol?

Edited October 31, 2008 by OriginalPoster

[PeaceBlondie]

Most folks in the SS medical insurance system are not eligible for the benefits before age 65. Even retired military are covered under Tricare at the minimum level, until age 65. Then Tricare, as I was told more than once, only is effective if you are paying about $100 per month for Medicare insurance premiums. But different rules may apply for disabled veterans and those already on SS disability.

Politically, the expats have no voting clout, as Jingthing says. And being out of the country nearly puts us in the same category as the illegal aliens in the US - we are not exactly pure Americans any more, in some folks' eyes.

[Lopburi99]

Most folks in the SS medical insurance system are not eligible for the benefits before age 65. Even retired military are covered under Tricare at the minimum level, until age 65. Then Tricare, as I was told more than once, only is effective if you are paying about $100 per month for Medicare insurance premiums. But different rules may apply for disabled veterans and those already on SS disability.

Politically, the expats have no voting clout, as Jingthing says. And being out of the country nearly puts us in the same category as the illegal aliens in the US - we are not exactly pure Americans any more, in some folks' eyes.

I need to read up on Tricare (I never even heard of it). But as a general FYI, a newly disabled person (as myself) becomes eligible for Medicare coverage after the 25th month of receiving SSA Disability benefits. As mentioned, I will be 62 then.

Edited October 31, 2008 by Lopburi99

[Jingthing]

Why the vitriol?

Sorry, election time over excitement.

Politically, the expats have no voting clout, as Jingthing says. And being out of the country nearly puts us in the same category as the illegal aliens in the US - we are not exactly pure Americans any more, in some folks' eyes.

Yes and no. Obama is the first potentially American expat friendly president that I am aware of in modern history. His father was a foreign national. He did farm work in Kenya. He lived in and went to school in Indonesia as a boy. His mother spent alot of time in Indonesia. He grew up in Hawaii, a true melting pot with a huge Japanese influence. He is so very cosmopolitan.

That said, I think the main but still small chance for medicare reimbursements for expat Americans is if it can be proven as a way of SAVING the government money. And it potentially may. If medicare reimbursements at a lower rate than would be needed in the US could persuade say 10 million extra Americans to retire in lower cost nations, mostly in Latin America of course, that would be 10 million people not making claims at full US rates. I expect if we get to a second Obama term, these arguments have a chance of at least being heard. But I wouldn't bet on it at all. Oh well.

Edited October 31, 2008 by Jingthing

[Heng]

Sweet news (for my folks anyway). Like getting two free pairs of Dr. Scholls to wear a month.

It pays for almost 1/3 of my new car payment!

Almost makes me want to pay my taxes in full. Almost.

[Lost in LOS]

Why the vitriol?

Sorry, election time over excitement.

Politically, the expats have no voting clout, as Jingthing says. And being out of the country nearly puts us in the same category as the illegal aliens in the US - we are not exactly pure Americans any more, in some folks' eyes.

Yes and no. Obama is the first potentially American expat friendly president that I am aware of in modern history. His father was a foreign national. He did farm work in Kenya. He lived in and went to school in Indonesia as a boy. His mother spent alot of time in Indonesia. He grew up in Hawaii, a true melting pot with a huge Japanese influence. He is so very cosmopolitan.

That said, I think the main but still small chance for medicare reimbursements for expat Americans is if it can be proven as a way of SAVING the government money. And it potentially may. If medicare reimbursements at a lower rate than would be needed in the US could persuade say 10 million extra Americans to retire in lower cost nations, mostly in Latin America of course, that would be 10 million people not making claims at full US rates. I expect if we get to a second Obama term, these arguments have a chance of at least being heard. But I wouldn't bet on it at all. Oh well.

sorry jingthing, wishful thinking. if obama makes medical care for everyone [with or without expats] the system will go bankrupt the first year they already tax our SS and Obama wants to give it to everyone, not just those who paid in so how long do you think it will last then. Not a political post just a reality post since i think he will win and he has lots of programs and no way to pay for them. there goes our increases. it would be nice if they would give us a bit of an allowance for medicare but doubt that will ever happen since we have no power

[lordofdelusion]

Why the vitriol?

Sorry, election time over excitement.

Politically, the expats have no voting clout, as Jingthing says. And being out of the country nearly puts us in the same category as the illegal aliens in the US - we are not exactly pure Americans any more, in some folks' eyes.

Yes and no. Obama is the first potentially American expat friendly president that I am aware of in modern history. His father was a foreign national. He did farm work in Kenya. He lived in and went to school in Indonesia as a boy. His mother spent alot of time in Indonesia. He grew up in Hawaii, a true melting pot with a huge Japanese influence. He is so very cosmopolitan.

That said, I think the main but still small chance for medicare reimbursements for expat Americans is if it can be proven as a way of SAVING the government money. And it potentially may. If medicare reimbursements at a lower rate than would be needed in the US could persuade say 10 million extra Americans to retire in lower cost nations, mostly in Latin America of course, that would be 10 million people not making claims at full US rates. I expect if we get to a second Obama term, these arguments have a chance of at least being heard. But I wouldn't bet on it at all. Oh well.

sorry jingthing, wishful thinking. if obama makes medical care for everyone [with or without expats] the system will go bankrupt the first year they already tax our SS and Obama wants to give it to everyone, not just those who paid in so how long do you think it will last then. Not a political post just a reality post since i think he will win and he has lots of programs and no way to pay for them. there goes our increases. it would be nice if they would give us a bit of an allowance for medicare but doubt that will ever happen since we have no power

" W " found the money to waste on Iraq. I hope we can prioritize differently in our future and help our own people. I worked in healthcare. It aint pretty.

[Lost in LOS]

what is the current rate that you can make a year before they take taxes from SS ?

[Jingthing]

what is the current rate that you can make a year before they take taxes from SS ?

Isn't it just seen as regular income so if that's all you make, the tax would be minimal?

Also, a proposal from Obama/Biden, stay tuned:

Eliminate Income Taxes for Seniors Making Less Than $50,000: Obama and Biden will eliminate all income taxation of seniors making less than $50,000 per year.

I heard somewhere they also want to eliminate the requirement to even FILE for seniors making less than 50K, which makes sense, it costs money to process tax returns.

Regarding health care reform, this isn't the place to debate health care policies, I just thought the lack of medicare for expats was a related issue to social security for expats. How would you feel if you weren't allowed social security or COLAS (as I think is the case with UK expats in Thailand) just because you lived abroad?

Edited November 1, 2008 by Jingthing

[Lost in LOS]

what is the current rate that you can make a year before they take taxes from SS ?

Isn't it just seen as regular income so if that's all you make, the tax would be minimal?

Also, a proposal from Obama/Biden, stay tuned:

Eliminate Income Taxes for Seniors Making Less Than $50,000: Obama and Biden will eliminate all income taxation of seniors making less than $50,000 per year.

I heard somewhere they also want to eliminate the requirement to even FILE for seniors making less than 50K, which makes sense, it costs money to process tax returns.

Regarding health care reform, this isn't the place to debate health care policies, I just thought the lack of medicare for expats was a related issue to social security for expats. How would you feel if you weren't allowed social security or COLAS (as I think is the case with UK expats in Thailand) just because you lived abroad?

I dont believe they pay income tax out of the country so they would be better off since i pay 20% of my income to taxes. that would buy one heck of a thai health insurance policy and i am not in America to get my medical benefits anyway

[PeaceBlondie]

what is the current rate that you can make a year before they take taxes from SS ?

About ten cents per pay period, if I understand your question. All wages are fully taxed up to about $100,000 in the calendar year for FICA, and there is no limit on Medicare tax. This is quite different from income tax withholding. I believe the annual minimum for SECA tax, including Medicare tax, is about $400 per year.

If your question is about including SS benefits received, in the current year, as taxable income, that varies with the taxpayer, and not all of it is taxable.

[Lopburi99]

Sweet news (for my folks anyway). Like getting two free pairs of Dr. Scholls to wear a month.

It pays for almost 1/3 of my new car payment!

Almost makes me want to pay my taxes in full. Almost.

Not quite sure of your comment, however if you mean you have an outstanding tax liability with the IRS - that debt does not need to be paid in full prior to the calculation of your SSA benefit amount. Some taxpayers are unable to ever pay all their tax indebtedness but if they enter into an agreement with the IRS (payment plan, settlement, suspension of collection activities, or declared uncollectible) their total SSA contributions are considered and full SSA benefit payments may commence. (I am no tax expert so don't take my words as gospel truth - check it out with your accountant, who might have good news or a good strategy for you.)

[Jingthing]

I dont believe they pay income tax out of the country so they would be better off since i pay 20% of my income to taxes. that would buy one heck of a thai health insurance policy and i am not in America to get my medical benefits anyway

Huh? Us citizens are liable any income taxes due on US based income, no matter where they live.

[Lost in LOS]

I dont believe they pay income tax out of the country so they would be better off since i pay 20% of my income to taxes. that would buy one heck of a thai health insurance policy and i am not in America to get my medical benefits anyway

Huh? Us citizens are liable any income taxes due on US based income, no matter where they live.

if you re-read my post it was following this "I just thought the lack of medicare for expats was a related issue to social security for expats. How would you feel if you weren't allowed social security or COLAS (as I think is the case with UK expats in Thailand) just because you lived abroad?" I was saying that the US pays taxes when you are not living in country and is the only country that does that [to my knowledge]. i said i would rather have my money tax free and take care of myself.

[Heng]

Sweet news (for my folks anyway). Like getting two free pairs of Dr. Scholls to wear a month.

It pays for almost 1/3 of my new car payment!

Almost makes me want to pay my taxes in full. Almost.

Not quite sure of your comment, however if you mean you have an outstanding tax liability with the IRS - that debt does not need to be paid in full prior to the calculation of your SSA benefit amount. Some taxpayers are unable to ever pay all their tax indebtedness but if they enter into an agreement with the IRS (payment plan, settlement, suspension of collection activities, or declared uncollectible) their total SSA contributions are considered and full SSA benefit payments may commence. (I am no tax expert so don't take my words as gospel truth - check it out with your accountant, who might have good news or a good strategy for you.)

I was talking about declaring in full to beging with.