Re: US citizen living in Bali on retirment do i have to pay
kauaibobby said:
anyone know about taxes in US.
or where i might find information.
I get paid for my retirement and pay taxes
if i live in Bali can i pay tax here instead of US.
or is it just as exspensive here
any info would be very helpful
I will call a tax attorney on monday
I am not too knowledgeable on retirement income specifically, but I have lived outside the U.S. for many years, and do know a bit about the tax situation for U.S. citizens living out side the U.S.
Firstly, U.S. citizens are required to pay U.S. tax regardless of where in the world they live/earn... But the good news is there are lots of deductions and exemptions, that mean you still have to file tax forms every year, but highly unlikely you would actually need to pay any money.
For example, there is an USD 80,000+ deduction right off the top (so unless your retirement income is more than 80,000 dollars, you are down to zero tax liability right there), also there is a housing decduction allowable, and you can also take a percentage of any tax you do pay in a foreign country (foreign tax exemption).
Bottom line, I have been living, and working in Japan for many years making a good salary... but with all the deductions/exemptions, I actually pay zero U.S. taxes.
Bottom bottom line, I would much rather be in Bali, than working... But another year or two for that.
P.S. I am also very interested to hear your report on what a real tax lawyer has to say.