# Tax Season



## Donwarner87 (Jan 18, 2016)

I'm sure my questions have already been discussed on this forum, but being new to the expat life I have a few tax related questions I haven't found answers to and wondering if I could get a few answers from those with experience. 

First, for tax purposes is it better to be a resident or non resident of the Philippines? 

Second, I am a retired U.S. government employee. I heard I don't have to pay taxes on my retirement pay as long as it it's below a certain level, but I still need to file, is this the case?

Third, should I have my check direct deposited in a bank account here in the Philippines? 

Fourth, do I need to pay taxes here in the Philippines on my U.S. retirement check? 

I know these are simple questions, but I am uncertain of the correct answers. I don't want to be chased down by Uncle Sam, especially since he's giving me my check.

Thanks


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## xabiaxica (Jun 23, 2009)

Donwarner87 said:


> I'm sure my questions have already been discussed on this forum, but being new to the expat life I have a few tax related questions I haven't found answers to and wondering if I could get a few answers from those with experience.
> 
> First, for tax purposes is it better to be a resident or non resident of the Philippines?
> 
> ...


Are you aware of our tax forum? Expat Tax - Expat Forum For People Moving Overseas And Living Abroad


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## M.C.A. (Feb 24, 2013)

We start out as 13a Non-quota Immigrant and after I think 10 years you can apply to be a Philippino citizen but I wouldn't do that if you get a US government check.

You can open up a pension account and have your check direct deposited into you Philippine bank, I'm thinking about doing this myself because I tire of writing checks at the bank and waiting 30 days to clear. Another benefit of having your bank here is that if your stateside ATM card stops working what a hassle getting your money unless you write checks to a money changer and then the loss of from 4-6 peso's per dollar for that service.

The only time you will pay Philippine taxes is if you have a business in the Philippines so no, you won't be paying taxes on your US pension check.

I don't need to pay US taxes either but I pay a minimal amount around $500 plus $10 state tax and file my Turbo Tax online, it shows that your social security number is active and that you are alive, I read somewhere that some people were declared dead and it was hassle getting their pensions back and also if you don't file taxes you may end up having to submit a letter yearly that your alive, many probably don't and get by but I really don't have that answer.


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## Donwarner87 (Jan 18, 2016)

Thanks for the info. One thing I forgot, my wife is Filipina and and not a U.S. citizen, do I file head of household or married filling separately?


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## Asian Spirit (Mar 1, 2010)

*Accurate Tax Help*

Don,

So many of us have different situations and even the tax law change. To make sure you get it right and so you are not ever fined; the best thing is to have absolute complete information.

As such, the US Embassy has outreach events every so often. For your area, here is a link to a PDF page showing the next outreach in your area.
If you happen to be out of that area then check the US embassy site for other times and places.
You can also contact the VFW for other free help in taxes to make sure it's done the right way *IF* you have to file.


Jet Lag


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## bidrod (Mar 31, 2015)

Donwarner87 said:


> Thanks for the info. One thing I forgot, my wife is Filipina and and not a U.S. citizen, do I file head of household or married filling separately?


Get your wife an ITIN when you file your taxes, that way you will file married filing a joint return.

Chuck


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## Phil_expat (Jan 3, 2011)

I do agree with M.C.A. That it is best NOT to become a Philippine citizen after 10 years on a 13a visa. One thing to consider is most US banks will not mail US ATM and credit cards and new checks to a Philippine address. I use a US PO box for these things that a relative take care of. You could use a mail forwarding service. I also have a PO Box at the VFW/ROA for mail that I receive here. I do visit the US at least once a year. The US social security is very strict about direct deposit social security checks. The Philippine account used for direct deposit must be in your name only and have no internet access. I did ask once why and was told that they want to make sure you still alive! My understanding is on earned income (W2 income) if live overseas there is a big discount on taxable income but this does not apply to retirement (pension) income. Everyone has their own way of getting money to the Philippines. I have a dollar account that I deposit personal checks in. it takes 15 working days to clear. The Philippine bank I use give a higher pesos exchange rate for withdrawal over $1,000 so I do not use the money changers. A lot of the things I do is because I plan on moving my family back to the USA. I do agree with all that M,C.A. and jetlag wrote.
TONY


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## M.C.A. (Feb 24, 2013)

*Direct deposit of pension*



Phil_expat said:


> I do agree with M.C.A. That it is best NOT to become a Philippine citizen after 10 years on a 13a visa. One thing to consider is most US banks will not mail US ATM and credit cards and new checks to a Philippine address. I use a US PO box for these things that a relative take care of. You could use a mail forwarding service. I also have a PO Box at the VFW/ROA for mail that I receive here. I do visit the US at least once a year. The US social security is very strict about direct deposit social security checks. The Philippine account used for direct deposit must be in your name only and have no internet access. I did ask once why and was told that they want to make sure you still alive! My understanding is on earned income (W2 income) if live overseas there is a big discount on taxable income but this does not apply to retirement (pension) income. Everyone has their own way of getting money to the Philippines. I have a dollar account that I deposit personal checks in. it takes 15 working days to clear. The Philippine bank I use give a higher pesos exchange rate for withdrawal over $1,000 so I do not use the money changers. A lot of the things I do is because I plan on moving my family back to the USA. I do agree with all that M,C.A. and jetlag wrote.
> TONY


PNB Bank has the direct deposit or pension account, you sure are lucky to only wait 15 days, I have to wait 30 days plus if they have holidays I have to double that date x 2 so 30 days plus two holidays = 34 day wait when depositing checks.


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## Phil_expat (Jan 3, 2011)

M.C.A.
sent you a message.
Tony


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## rpmorley (Oct 30, 2012)

You must pay taxes on your pension and your TSP annuity. You cannot be a resident unless you get a 13 series visa thru your natural or dual citizen wife. I still use NFCU (in the States) with a US address and I mouse click a remittance thru Philippines National Bank of New York which has a federal reserve routing number. Do not DD anything here. 

You must follow the FATCA/FBAR rules and keep below 10k USD in reserve here. Only remit what you need to live. If you need big money wire transfer directly to avoid FATCA. You cannot be a dual citizen if you are a natural US citizen. <Snip>


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## Cebu Citizen (Dec 13, 2013)

I have had problems finding anyone who can assist me in preparing my taxes after living here and make sure the authorities are not hunting me down for failure to file the appropriate required forms. A few people suggested that I try Turbo Tax but the online forms WILL NOT let me do it.

It gets me as far as asking if I am married and I say Yes...because I am married to a Filipina. Then it asks me for her Social Security Number...which she has NONE because she IS NOT a US Citizen nor are we residing in the US.

Then the TurboTax form does not let me proceed any further...because I cannot enter a social security number if none exists.

Last year I did not have to file and I may not need to file this year either but I am not sure and I would love to find a qualified U.S. tax expert that I can sit down with face-to-face and discuss what do I really need to do as far as reporting my income and bank balances, etc.

I am relatively certain that my income level does not require filing but I am not sure about what needs to be reported for the Philippine bank balances that are reported to the U.S. My Veterans Disability is tax free and not reportable and my Social Security Disability is not enough to warrant filing. SSS does not have to be reported until you surpass 25,000.00 per year and I am just shy of that figure and the bulk of my disability is from the VA which is not reportable.

Anyone have any good sound suggestions?


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## Cebu Citizen (Dec 13, 2013)

xabiachica said:


> Are you aware of our tax forum? Expat Tax - Expat Forum For People Moving Overseas And Living Abroad



I guess I could have saved you all reading my last post if I would have read this one first...Thanks Xabiachica...I'll check out the Expat Tax Forum Section and see if I can shed some light on my situation.


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## Phil_expat (Jan 3, 2011)

She needs a “tax ID number” for you to file married. It is for a non US citizen and used in the place of a social security number.

Tony


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## bidrod (Mar 31, 2015)

When you file the first time with your wife you will have to file manually not by e-file. This is because you will also be requesting a ITIN for your wife at the same time. It will require filing a Fm 7(?) with the appropriate documents. The whole package is mailed to a different address than the normal for tax filing. All the appropriate info is on the IRS site. We did this last year.

Chuck


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## Donwarner87 (Jan 18, 2016)

Thanks Chuck. I just was reading about the form7 and I realized I have to fill out a form 88?? To declare being an expat. I am still having issues with getting all of my w-2 and 1099's to file. I just retired from the government this year so it's definitely a learning process. Hopefully I can get everything figured out this year, so next year goes smoothly.


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## bidrod (Mar 31, 2015)

Also since you live here your filing date deadline is 15 Jun not 15 Apr.


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## 197649 (Jan 1, 2013)

I have used TURBO TAX for 3 years never an issue. remember the banking laws. You won't have a problem. My disability is Direct Deposit my retirement and SS is deposited into my bank in US. All the 1099s I get online I don't have anything mailed here all email or download. Since your just getting started after you get settled in its easy. I personally don't use the embassy or RAO tax folks. They are not like H&R Block they won't go to court with you if that happened. Taxes are easy to do. unless your an unscrupulous type then your going to have problem to begin with.


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## fmartin_gila (May 15, 2011)

I also have used TurboTax for many years. They lead you thru it step by step. When finished, just print it out & Presto - done. My Filipina has a SS # as we were married in the states and she was given the number at that time so no info as to the ITN #. I do use my mail forwarders address in Texas for an address so is the same as filing stateside and I/We file Jointly using only my Pension and SS.

Fred


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