Site Search:
 
Get TEFL Certified & Start Your Adventure Today!
Teach English Abroad and Get Paid to see the World!
Job Discussion Forums Forum Index Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Students and Teachers from Around the World!"
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Social security for US citizen in Mexico?

 
Post new topic   Reply to topic    Job Discussion Forums Forum Index -> Mexico (off-topic)
View previous topic :: View next topic  
Author Message
srs3829



Joined: 09 Sep 2014
Posts: 30

PostPosted: Mon Aug 31, 2015 5:48 pm    Post subject: Social security for US citizen in Mexico? Reply with quote

Hi all,

Still contemplating a move to Mexico to teach English. Can any U.S. citizens working there are teachers tell me how social security applies to their situation?

Specifically, are you paying into both the Mexican and U.S. social security systems? Or only one? Are you somehow still able to accrue U.S. social security points? Are expats eligible for Mexican social security?

I'm not near retirement age, but am curious to know anyway.

Thank you!
Back to top
View user's profile Send private message
MotherF



Joined: 07 Jun 2010
Posts: 1438
Location: 1748'N 9746'W

PostPosted: Mon Aug 31, 2015 9:15 pm    Post subject: Re: Social security for US citizen in Mexico? Reply with quote

srs3829 wrote:
Hi all,


Specifically, are you paying into both the Mexican and U.S. social security systems? Or only one? Are you somehow still able to accrue U.S. social security points? Are expats eligible for Mexican social security?

I'm not near retirement age, but am curious to know anyway.

Thank you!


In my situation No. Only Mexico. No. Yes.

I came to Mexico in 1998. I had no idea I'd stay this long. When I realized it looked like I'd be here long term it was the gloomly time know as the dubya years and I figured the US system wouldn't make it to my retirement age any how.
But as I understand it you can pay into it, but that then waives your foreign income exemption so you have to pay US tax on your income.

I could be wrong though. I'm now in my forties and never worked a full year full time in the US. So I'm not expecting any social security payment from uncle Sam.
Back to top
View user's profile Send private message
Tretyakovskii



Joined: 14 Aug 2009
Posts: 462
Location: Cancun, Mexico

PostPosted: Mon Oct 12, 2015 9:33 pm    Post subject: Reply with quote

U.S. citizens are subject to U.S. laws relating to taxation everywhere in the world, Mexico is no exception.

The exemption for earned income is huge under U.S. Law (nearly $100,000 USD) so few end of paying U.S. income tax on their foreign earned income; also, wages earned abroad are exempt from U.S. social security taxes. Earnings from self employment are not, however, and social security taxes at the rate of 15.3 % of net earnings after expenses is due each year in the U.S. and reported on Form SE accompanying the individual Form 1040.

If you have self employment earnings and pay the social security taxes on it you can accumulate credit towards eligibility for a retirement check after participating in the system a total of ten years. At that point it is vested. Going online at the official Social Security Administration website allows you to check eligibility, and just how much you would be paid at age 62, or at full retirement age. You could also have a look to see what the minimum guaranteed amount of social security is, once you've met the ten years of contributions rule.

It is an erroneous impression that paying social security taxes on self employment income earned abroad "...waives your foreign income exemption so you have to pay US tax on your income." You were right, MotherF, to have some doubts about it. For a number of years I was both paying into social security on self employment earnings abroad while, at the same time, claiming the foreign earned income exemption and therefore paying no income taxes in the U.S.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    Job Discussion Forums Forum Index -> Mexico (off-topic) All times are GMT
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


This page is maintained by the one and only Dave Sperling.
Contact Dave's ESL Cafe
Copyright © 2018 Dave Sperling. All Rights Reserved.

Powered by phpBB © 2001, 2002 phpBB Group

Teaching Jobs in China
Teaching Jobs in China