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Tigerstyleone
Joined: 26 Mar 2010
Posts: 181
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 Posted: Wed May 15, 2013 3:34 am Post subject: Retirement Fund |
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| How are you preparing for retirement? What kind of retirement fund do you have ? I'm thinking of starting a SEP-IRA. Any advice? |
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kurtz
Joined: 12 Mar 2008
Posts: 518
Location: Phaic Tan
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| Posted: Thu May 16, 2013 9:00 am Post subject: |
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Retirement fund on $20 an hour? Paradise Paradise  |
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Mushroom Druid
Joined: 19 Oct 2009
Posts: 91
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| Posted: Sat May 18, 2013 8:28 pm Post subject: Re: Retirement Fund |
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| Tigerstyleone wrote: |
| How are you preparing for retirement? What kind of retirement fund do you have ? I'm thinking of starting a SEP-IRA. Any advice? |
The only thing an EFL teacher can do teaching overseas is save cash and then invest it some where.
I used to max out my ROTH IRA in the US. However I paid no taxes and was teaching overseas. This could have been a tax problem even though I am a very small fish.
Aren�t SEP IRAs for self employed people inside the US.
Personally I have stopped paying into my IRA and only invest in Vanguard index funds.
As for the long run and long road to retirement, if it is even possible for any westerner, I would go for rentals and other investment vehicles, which means getting out of EFL before you turn 30. |
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Oh My God
Joined: 31 Jan 2010
Posts: 273
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| Posted: Sun May 19, 2013 12:59 am Post subject: Re: Retirement Fund |
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| Tigerstyleone wrote: |
| How are you preparing for retirement? What kind of retirement fund do you have ? I'm thinking of starting a SEP-IRA. Any advice? |
I'd seek out Spycatcher Reincarnated if you're serious about investing in VN |
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charlesmarlow
Joined: 17 May 2013
Posts: 68
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| Posted: Sun May 19, 2013 1:27 am Post subject: |
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If you are an american citizen and a bona fide resident of another country such as Vietnam, foreign earned income up to 95,100USD is not taxable. if your total income in the USA is less than 9,750 USD for a single person, you do not have to pay any taxes or even file a US tax return.
Also, SEP IRA's are not taxable until withdrawl, but why would you set up any kind of IRA if you are a foreign resident of another country due to not being taxed. Nobody does it.
The best bet in Vietnam is putting your money in a bank in Vietnam Dong, interest about 9% per year or the Vietnamese stock market.
The IRS is always hungry, small or big fish, but small fish can become big fish. Your best bet is to know your tax obligations. |
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ExpatLuke
Joined: 11 Feb 2012
Posts: 744
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| Posted: Mon May 20, 2013 6:40 am Post subject: |
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My retirement fund is stuffing $1,000 in my mattress every month  |
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Mushroom Druid
Joined: 19 Oct 2009
Posts: 91
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| Posted: Tue May 21, 2013 5:35 pm Post subject: |
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| charlesmarlow wrote: |
| If you are an american citizen and a bona fide resident of another country such as Vietnam, foreign earned income up to 95,100USD is not taxable. if your total income in the USA is less than 9,750 USD for a single person, you do not have to pay any taxes or even file a US tax return. |
I am aware of this. This is the foreign income exclusion act for the $95K.
I have not filed in several years.
Yes, I think there is confidence in the VND at the moment and 9% term accounts are definitey better than many other options. |
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TRH
Joined: 27 Oct 2011
Posts: 340
Location: Hawaii
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| Posted: Tue May 21, 2013 11:18 pm Post subject: |
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| Mushroom Druid wrote: |
| charlesmarlow wrote: |
| If you are an american citizen and a bona fide resident of another country such as Vietnam, foreign earned income up to 95,100USD is not taxable. if your total income in the USA is less than 9,750 USD for a single person, you do not have to pay any taxes or even file a US tax return. |
I am aware of this. This is the foreign income exclusion act for the $95K.
I have not filed in several years.
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You are aware that even though your income may be subject to the exclusion, you are probably still over the gross amount that requires you to file and that you still must even if you owe no taxes. You just have to declare the income then deduct it back to zero. It could get sticky if you return to the US and the IRS sends an agent who says where are the last 10 years of tax filings. Technically you can't be penalized if you owe no taxes, as the penalties are a % of taxes owed, but I think you can be fined for willfully refusing to file or it could be a real pain to recreate all those back filings if they made you do that. Maybe you will be OK as I read that the Republicans are about to totally emasculate enforcement at the IRS.
Also there may be ramifications to taking the exclusion for those who may wish to return to the US with a spouse. To do that you must be a "physical resident" of the US and living overseas temporarily. By taking the exclusion, you declare that you are not physically resident in the US. |
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charlesmarlow
Joined: 17 May 2013
Posts: 68
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| Posted: Wed May 22, 2013 6:36 am Post subject: |
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| Quote: |
| You are aware that even though your income may be subject to the exclusion, you are probably still over the gross amount that requires you to file and that you still must even if you owe no taxes. |
Yes, the key word is probably but I would say it's highly unlikely. However, can you give an example with details and numbers regarding gross amount so the readers can understand it.
| Quote: |
| It could get sticky if you return to the US and the IRS sends an agent who says where are the last 10 years of tax filings. |
The IRS does not send agents to houses, businesses etc. 
They use the postal service and following that, there could be interviews
at their office, and they could get a court order to force you to file back tax reports past 3 years(think it's 3 years), but that's if you owe them taxes if you dont oew them anything unlikely that you will ever hear from them. And if you own them taxes and don't pay they can garnish your wages, put a lien on your house etc but it's a long process. You generally need assets for the IRS to get interested in you too many big fish to catch.
| Quote: |
| Also there may be ramifications to taking the exclusion for those who may wish to return to the US with a spouse. To do that you must be a "physical resident" of the US and living overseas temporarily. By taking the exclusion, you declare that you are not physically resident in the US. |
This is not true, if you would like to find out the details all you have to do is check the website of American embassy or consulate. And you will find the details of the application process and a question and answer document etc.
Looking forward to the details regarding the numbers of gross amount.
If we dont hear from you, oh well, read the following IRS DOCUMENT http://www.irs.gov/pub/irs-pdf/p54.pdf |
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TRH
Joined: 27 Oct 2011
Posts: 340
Location: Hawaii
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| Posted: Wed May 22, 2013 2:26 pm Post subject: |
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| charlesmarlow wrote: |
| Quote: |
| You are aware that even though your income may be subject to the exclusion, you are probably still over the gross amount that requires you to file and that you still must even if you owe no taxes. |
Yes, the key word is probably but I would say it's highly unlikely. However, can you give an example with details and numbers regarding gross amount so the readers can understand it.
| Quote: |
| It could get sticky if you return to the US and the IRS sends an agent who says where are the last 10 years of tax filings. |
The IRS does not send agents to houses, businesses etc.
They use the postal service and following that, there could be interviews
at their office, and they could get a court order to force you to file back tax reports past 3 years(think it's 3 years), but that's if you owe them taxes if you dont oew them anything unlikely that you will ever hear from them. And if you own them taxes and don't pay they can garnish your wages, put a lien on your house etc but it's a long process. You generally need assets for the IRS to get interested in you too many big fish to catch.
| Quote: |
| Also there may be ramifications to taking the exclusion for those who may wish to return to the US with a spouse. To do that you must be a "physical resident" of the US and living overseas temporarily. By taking the exclusion, you declare that you are not physically resident in the US. |
This is not true, if you would like to find out the details all you have to do is check the website of American embassy or consulate. And you will find the details of the application process and a question and answer document etc.
Looking forward to the details regarding the numbers of gross amount.
If we dont hear from you, oh well, read the following IRS DOCUMENT http://www.irs.gov/pub/irs-pdf/p54.pdf |
I will attempt to answer your comments in the order they were made.
First from page 3 of pub 54 that you cite: "Generally, you must file a return for 2012 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table.
Filing Status*
Single . . . . . . . . . . . . . . . . . . . . . . . . . Amount $ 9,750
Married filing jointly. . . . . . . . . . . . . . . Amount $ 19,500"
Also from Pub 17 (page 4) "U.S. Citizens and Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you received abroad, including any income you can exclude under the foreign earned income exclusion."
Link: http://www.irs.gov/pub/irs-pdf/p17.pdf
I think this pretty clearly establishes that if a single US citizen earns more than $9750, he must file even if the credit will eliminate all of the income. For example, the OP, in another thread, claimed he makes $2400 a month plus free housing at a resort hotel (which is taxable too) so he would seem to be well under the limit of the credit but still subject to filing.
With respect to being audited it may be relatively rare but I was at a friend's place of business once when the IRS showed up so I can tell you it does happen. I myself have been called in by my state to show them receipts. There are certain things that trigger an investigation. I don't know this for sure but it seems logical that an extended period with no filings followed by a filing upon return to the US might be one of those red flags. Probably the reality is that nothing happens if one does not file. If it does happen it will be when one begins to file again.
Regarding the immigration issue, I stand partially corrected, if that's a proper phrase. You do not need to be physically resident in the US to file an I-130 which is the primary petition. However, from the instructions for the I-864 Affidavit of Support: "A sponsor is required to be at least 18 years old and domiciled in the United States, or its territories or possessions (see Step-by- step Instructions for more information on domicile)." The Step-by-step Instructions include continuous filing of US tax returns as evidence of temporary overseas residence. Also the form requires the sponsor to list taxable income filings for three years and a copy for the most recent return. Of course if one has not filed, he (or she I suppose) could fall back on a relative or third party to co-sponsor. So I guess you are technically correct, you can sponsor your spouse without having filed US taxes but it will be more difficult.
Links: http://www.immihelp.com/affidavit-of-support/country-of-domicile.html
http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=b70f8875d714d010VgnVCM10000048f3d6a1RCRD&vgnextchannel=db029c7755cb9010VgnVCM10000045f3d6a1RCRD
Regards
Last edited by TRH on Fri May 24, 2013 1:41 am; edited 1 time in total |
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Mushroom Druid
Joined: 19 Oct 2009
Posts: 91
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| Posted: Thu May 23, 2013 5:50 pm Post subject: |
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[quote="TRH"][quote="Mushroom Druid"]
| charlesmarlow wrote: |
| If you are an american citizen and a bona fide resident of another country such as Vietnam, foreign earned income up to 95,100USD is not taxable. if your total income in the USA is less than 9,750 USD for a single person, you do not have to pay any taxes or even file a US tax return. |
I am aware of this. This is the foreign income exclusion act for the $95K.
I have not filed in several years.
| Quote: |
| You are aware that even though your income may be subject to the exclusion, you are probably still over the gross amount that requires you to file and that you still must even if you owe no taxes. You just have to declare the income then deduct it back to zero. It could get sticky if you return to the US and the IRS sends an agent who says where are the last 10 years of tax filings. Technically you can't be penalized if you owe no taxes, as the penalties are a % of taxes owed, but I think you can be fined for willfully refusing to file or it could be a real pain to recreate all those back filings if they made you do that. |
Yes, I am aware.
There is no paper trail. So....let�s say I grossed $3,000 last year.
I have spoken to a couple of different accountants.
I have not filed actually, in about 12-13 years.
It�s not important, and no, no IRS agent will waste 2 seconds on me.
Don�t worry about this folks.
We are teaching English. |
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TRH
Joined: 27 Oct 2011
Posts: 340
Location: Hawaii
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| Posted: Fri May 24, 2013 1:38 am Post subject: |
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| Mushroom Druid wrote: |
Yes, I am aware.
There is no paper trail. So....let�s say I grossed $3,000 last year.
I have spoken to a couple of different accountants.
I have not filed actually, in about 12-13 years.
It�s not important, and no, no IRS agent will waste 2 seconds on me.
Don�t worry about this folks.
We are teaching English. |
I think this is in a way not really a much a disagreement with each other as it is a reflection of our different circumstances. This is a little like the discussion on the thread Moving to Vietnam-Confused in particular some very constructive comments on page 2. (I'm not counting the last one on the page which was just a well meaning fun dig at Kurtz.) My circumstances tell me that I am better off filing, yours say don't file. The more decision making information everyone has the better. |
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charlesmarlow
Joined: 17 May 2013
Posts: 68
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| Posted: Sat May 25, 2013 1:57 am Post subject: |
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TRH
| Quote: |
First from page 3 of pub 54 that you cite: "Generally, you must file a return for 2012 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table.
Filing Status*
Single . . . . . . . . . . . . . . . . . . . . . . . . . Amount $ 9,750
Married filing jointly. . . . . . . . . . . . . . . Amount $ 19,500"
Also from Pub 17 (page 4) "U.S. Citizens and Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you received abroad, including any income you can exclude under the foreign earned income exclusion."
Link: http://www.irs.gov/pub/irs-pdf/p17.pdf
I think this pretty clearly establishes that if a single US citizen earns more than $9750, he must file even if the credit will eliminate all of the income. For example, the OP, in another thread, claimed he makes $2400 a month plus free housing at a resort hotel (which is taxable too) so he would seem to be well under the limit of the credit but still subject to filing.
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Well, you are right and I was wrong, I'll have to admit to that.
Regarding the resort hotel, I just checked it because it seemed to good to be true, salary etc and of course the Hotel that the poster mentioned does not exist on Phu Quoc.
Regaeding immigration, it's all about money, what are your assets and do you have the resources to live in the USA without Govt. handouts etc. |
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TRH
Joined: 27 Oct 2011
Posts: 340
Location: Hawaii
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| Posted: Sat May 25, 2013 5:36 am Post subject: |
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| charlesmarlow wrote: |
| Well, you are right and I was wrong, I'll have to admit to that. |
That is gracious of you but as I stated above, it is not really about right or wrong, it's about having as much information as is practical.
| charlesmarlow wrote: |
| Regarding the resort hotel, I just checked it because it seemed to good to be true, salary etc and of course the Hotel that the poster mentioned does not exist on Phu Quoc. |
Why am I not surprised? Wouldn't we all want that job if it were real? Paradise, Paradise indeed!
| charlesmarlow wrote: |
| Regaeding immigration, it's all about money, what are your assets and do you have the resources to live in the USA without Govt. handouts etc. |
True. I didn't detail it earlier but you can in theory be a financial sponsor with no income. From the I-864 instructions: In the case of a spouse, the "total value of your assets must ... be equal to at least three times the difference"..."between your total household income and the current poverty guidelines for your household size," and these assets must be liquid. So if you have no income, for immigration to the US mainland a family of two, yourself and your spouse, would need assets of $19,387 x 3=$58,161.00. With one child the number climbs to $73,236.00. The instructions also say that all sponsors must submit "A copy of [their] individual Federal income tax return, including W-2s for the most recent tax year, or a statement and/or evidence describing why you were not required to file." This remains true even if one is using assets to qualify, so you will need to have filed even if all your income is zeroed out.
Links: http://www.uscis.gov/files/form/i-864instr.pdf
http://www.uscis.gov/files/form/i-864p.pdf |
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