Thoughts On My Cpa's Advice

[phetaroi]

I met with my excellent CPA and he had gotten some first hand advice for me from a colleague CPA who had lived overseas much of her adult life. Any thoughts on some of the salient points:

1. To divide up my finances among 3 banks that would protect my savings through FDIC insurance, yet still be accessible from Thai9land -- Citibank (with which I am already affiliated), HSBC, and ING. Of course, I would also have a Thai bank account. These accounts should not be recognized as an account from Virginia (my current/old residence).

2. Have my pension checks from the US direct deposited into Bangkok Bank through their NYC office.

3. Get a USA2Me mailing address.

4. How do I vote in U.S. federal elections in Thailand...it helps establish that I am living in Thailand and not in any state in US.

Thanks for any input.

[sabaijai]

Regarding 4, to vote in the US while travelling or residing abroad, you have to be on the voter register in a county somewhere in the US. Plenty of US residents vote absentee, even tourists. So it's not much in the way of evidence, ie voting from Thailand won't be sufficient to establish your non-US tax home. You must actually reside outside of the US for 11 months in one year.

[Langsuan Man]

First of all you had better surrender your Virginia State Drivers license to break your residence in VA, and as the second poster mentioned you must establish a residency state in order to vote in US elections. Establishing residency in a non state income state is advisable. For information regarding state residency see the following URL.: http://www.retirementliving.com/RLtaxes.html

Your post appears to be directed at "sheltering" your retirement income, which may or may not be possible depending upon the sources. If a private pension you MAY be able to shelter it, if a government pension, forget about it. Also IRA, 401K or TSP distributions will be subject to Federal Income tax. Social Security of course is going to be taxed regardless of your "out of US" timing.

Unfortunately MOST CPA's don't have a clue as to the regulations regarding RETIREMENT income since most of their business is from expats that are income earners, overseas.

And as a former resident of Virginia I have personal knowledge they are mercenary at collecting state income taxes and will only let you off the hook if you can prove that you have established residency in another STATE. They have no law exempting you from state income taxes because you are overseas. The federal law limiting your exposure to federal income tax by being out of the country for 12 months does not apply to STATES.

[phetaroi]

Your post appears to be directed at "sheltering" your retirement income, which may or may not be possible depending upon the sources.

And as a former resident of Virginia I have personal knowledge they are mercenary at collecting state income taxes and will only let you off the hook if you can prove that you have established residency in another STATE. They have no law exempting you from state income taxes because you are overseas. The federal law limiting your exposure to federal income tax by being out of the country for 12 months does not apply to STATES.

First of all, thank you both for your responses.

I have no desire to shelter my income from federal taxes, although I was hoping to not have to pay state taxes...since I will never again live in Virginia (if I return from Thailand I will live in the west...definitely not in Virginia).

To be honest, a big concern I have is protecting my bank accounts with FDIC insurance.

[Langsuan Man]

.............

I have no desire to shelter my income from federal taxes, although I was hoping to not have to pay state taxes...since I will never again live in Virginia (if I return from Thailand I will live in the west...definitely not in Virginia).

To be honest, a big concern I have is protecting my bank accounts with FDIC insurance.

Well if that is your main concern, the FDIC insurance limit has been raised to $250,000 per person, per account, as a result of the "Bank Bailout" legislation.

[phetaroi]

.............

I have no desire to shelter my income from federal taxes, although I was hoping to not have to pay state taxes...since I will never again live in Virginia (if I return from Thailand I will live in the west...definitely not in Virginia).

To be honest, a big concern I have is protecting my bank accounts with FDIC insurance.

Well if that is your main concern, the FDIC insurance limit has been raised to $250,000 per person, per account, as a result of the "Bank Bailout" legislation.

True, although that is temporary at this point, not permanent. And, as I am finding, some banks will not give you an account unless you have an American residential address and American telephone number.

[TravelerGrl]

.............

I have no desire to shelter my income from federal taxes, although I was hoping to not have to pay state taxes...since I will never again live in Virginia (if I return from Thailand I will live in the west...definitely not in Virginia).

To be honest, a big concern I have is protecting my bank accounts with FDIC insurance.

Well if that is your main concern, the FDIC insurance limit has been raised to $250,000 per person, per account, as a result of the "Bank Bailout" legislation.

True, although that is temporary at this point, not permanent. And, as I am finding, some banks will not give you an account unless you have an American residential address and American telephone number.

You can use a service like MyUS to get both a phone number and a US address. They are reputable, and can send your mail and also packages from home for good prices.