Some 9 million American citizens #live overseas, according to the State Department. Nearly half a million receive Social Security benefits while residing in #foreign countries.
Most US #retirees choose #Mexico, Costa Rica (which used to be part of Mexico), and Panama (which used to be part of Columbia). So says International Living’s Annual Global Retirement Index. Because of low costs, accessible health care, and beautiful vistas.
If you retire with hefty savings or income, you may trigger envy.
Just like the county, state, and federal government you leave, the new ones may want to #tax you, too. While your former ones may try to continue taxing you.
Taxes May Follow Expats, But Not Medical Tourists to Mexico, If Working
Regardless of where you live, the IRS can subject your worldwide income to federal income taxes. Plus, up to 85% of your Social Security benefits.
If you live and work abroad in 2018, they let you exclude up to $104,100 in overseas income. But the IRS does not apply the exclusion to retirement income. If you trade or manage your mutual funds, note that some US #banks prefer their clients not reside overseas.
If you open a foreign bank accounts, both the IRS and Treasury demand you report to them. They also demand your foreign bank to report your assets to them. Hence some banks do not bother with expats.
Taxes May Follow Expats, But Not Medical Tourists to Mexico, And May Be Cut
There are ways to avoid your former governments’ taxes.
* If you have a home in a high-tax state, consider selling it.
* Surrender your driver’s license and voter’s registration card.
To receive mail, you can maintain an American address. You can pay a company to forward your mail. Also they can scan your correspondence. That gives you real-time access to your mail.
Millions have worked out the details before you. If you like the savings and scenery of Mexico, come check it out. While here, take care of any #dental or #medical needs. With DocTours, it’s #safe and #affordable.