Us Soc Sec Payments And Part Time Work

[mikeh]

I couldn't find another forum section so I thought I'd post here. I've applied for early retirement (age 62) and found out that while I can still work and collect benefits, I can't work more than 45 hours per month. There is no baht amount restriction on income, just hours. Anyone have any experience with this and how this is monitored? Thanks.

[rfukata]

that is a good question. I am nearing the early retirement age myself and understand that upon collecting your monthly SS pension you are limited

in supplementary (part-time) working hours otherwise your pension will be lessened. I think this is tracked through the W2 wage statement which the

part-time company provides you and the FED. Unless the company who you will represent issues the W2, you will most likely be off the hook unless you

voluntarily submit your additional income in (baht - exchange rate $) during tax filings. All other income under the 1099 form such as interest, retirement,

stocks, ect. should not affect your set monthly pension income. I am sure other fellow US retiree's members would have additional comments or corrections

to this.

[mikeh]

There is no W2 or 1099 from a Thai company. I was thinking of continuing to work for a Thai company and what I'm wondering is how the US Soc Security authorities monitor the number of hours per month someone works. The rule is that any month in which you work more than 45 hours you lose your Soc Sec payment for that month.

that is a good question. I am nearing the early retirement age myself and understand that upon collecting your monthly SS pension you are limited

in supplementary (part-time) working hours otherwise your pension will be lessened. I think this is tracked through the W2 wage statement which the

part-time company provides you and the FED. Unless the company who you will represent issues the W2, you will most likely be off the hook unless you

voluntarily submit your additional income in (baht - exchange rate $) during tax filings. All other income under the 1099 form such as interest, retirement,

stocks, ect. should not affect your set monthly pension income. I am sure other fellow US retiree's members would have additional comments or corrections

to this.

[longball53098]

Its my understanding that any income gained by a US citizen anywhere must be reported on you're 1040 every year. If that income exceeds certain amounts then it will affect you're Social Security amounts and if that is taxed or not. Foreign earned income is subject to taxes and is reportable on a 1040. Thailand has tax treaties with the US. Maybe a visit to the IRS web pages will explain some of this question in further detail.

There are many US taxpayers living and working here. Surely some one of them has a good reply to this question.

Reason for edit is I think this question would be better served in the "General" topics

[lanny]

Each year, Social Security will send you a questionnaire. If you don't reply, they stop your payments until you do. On this questionnaire, you are asked if you work; and, if you do, to give the details. Among the details, they want to know how many hours you worked each month. Then, if you work less than the 45 hours, you are asked to explain why. They also cross-check against income reported to IRS on your tax return.

Of course, if you work for a Thai company, the IRS is not informed, and you could simply not report the income. That is a fraudulent return, however, and there is no statute of limitations on IRS assessing taxes and penalties, should they ever find out. Then, social security could claim you received benefits fraudulently and demand you pay them back - with interest!

[mikeh]

Thanks Lanny - so it's an annual reporting.

Not sure I understand why you'd have to explain working less than 45 hours per month. Did you mean more than 45, since that's the limit?

Each year, Social Security will send you a questionnaire. If you don't reply, they stop your payments until you do. On this questionnaire, you are asked if you work; and, if you do, to give the details. Among the details, they want to know how many hours you worked each month. Then, if you work less than the 45 hours, you are asked to explain why. They also cross-check against income reported to IRS on your tax return.

Of course, if you work for a Thai company, the IRS is not informed, and you could simply not report the income. That is a fraudulent return, however, and there is no statute of limitations on IRS assessing taxes and penalties, should they ever find out. Then, social security could claim you received benefits fraudulently and demand you pay them back - with interest!

[Mario2008]

Note that if you apply for an extension of stay based on retirement, you are not allowed to work. Labour will not provide you with a work permit.

[mojaco]

Each year, Social Security will send you a questionnaire. If you don't reply, they stop your payments until you do. <snip>

I have been retired on Social Security for six years an have never reveived the questionnaire you mention. Is this something new this year?

[TerryLH]

"Its my understanding that any income gained by a US citizen anywhere must be reported on you're 1040 every year. If that income exceeds certain amounts then it will affect you're Social Security amounts and if that is taxed or not."

That's only true if you live in the US. For folks abroad, they use hours worked, not money earned as the benchmark.

W2's and 1040's are reporting money, not hours, so not of use for social security.

In the past, they asked how many hours I worked. The number I gave them was not questioned.

This past year I got a form letter to fill out. They asked if my work situation had changed. Again, I assume they'll take my word for it.

If you do cheat, and get caught, you'll probably be up that proverbial river without a paddle.

In some respects the difference between money earned and hours worked makes sense. In others, it doesn't.

[longball53098]

The following pdf makes for good reading if you are like the OP and work and draw SS benefits.

SSA.pdf