Job Discussion Forums

[Tretyakovskii]

It's clear from the posts to this forum that there are a good many teachers over the age of 60 who are still actively teaching, as am I, and there may be others, not teachers, of retirement age who occasionally read this forum, so I'd like to share something of benefit for those who may not have heard of it. (As an aside- for those who may be reading this because they were mislead by the caption- here, in Mexico, I've encountered no "age discrimination" in my search for work: prospective employers/clients seemed to be more interested in my experience, than my age.)
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The Mexican Federal Government sponsors an ID card for those at least 60 YOA which entitles its holder to significant discounts on a number of popular services, and some products. In addition to Mexican citizens, it is available to foreigners who are here on FM2/3. The agency that administers it is called, Instituto Nacional de las Personas Adultos Mayores; hence, the name of the card, INAPAM. (This program was previously called, "INSEN", and many times the discount is referred to using the former term, when offered: in some cases, you'll have to explain that to those unfamiliar with the new term, and the new card, most of whom will then immediately understand what it's about.)

Using mine, I've enjoyed 50% discounts on all ADO bus tickets, UltraMar ferry rides, Mexican League Baseball tickets, and free admission to any and all national parks. For example, when I visit Chichen Itza, I can come and go from the park, freely, and pay nothing. Other parks, operated for profit, are said to offer 50% off to holders of the INAPAM card, but I haven't had the opportunity to try it, yet. In many locations in Mexico, public transport recognizes these cards with discounts. In Oaxaca, I got more than 50% off on city bus rides (perhaps public transport systems in D.F. also recognize this card, in which case the savings, over time, could be significant). Every museum I've been in has honored this card, with either free admission, or significant discounts (private museums).

In addition, some medical providers and pharmacies offer discounts to holders of the INAPAM card in the range of 5-20%.

Anyone 60 YOA, or older, should consider getting one, as its a pleasure to use, and is free of charge.
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To apply for your INAPAM card, you'll need the following originals: your passport; your FM2/3; your C.U.R.P. (Clave Unica de Registro de Poblacion, a unique personal I.D. number assigned you by the Mexican Government), and your proof of residence address.

Your proof of residence address must be of the same quality as that used to secure your FM2/3; that is, proof of your actual residence in Mexico, which can be a paid utility bill, bearing your actual address, for a utility service which is billed in your name; or, if the utility account is in the name of another, then, in addition- a letter from that person, 1) signed under a declaration they are telling the truth; which 2) shows the address of the property; and, 3) names you as living there, with 4) the date on which you began living there- together with a copy of their personal identification.

If you don't already have a C.U.R.P. number, you'll need to get one. Your FM2/3 will have to have a "Numero Expediente" in it: if it doesn't, you'll have to go back to immigration and ask them to put one in it for you; then, you'll be able to apply for the C.U.R.P.

The INAPAM website will tell you who to contact, in your area, to apply for your INAPAM card.

http://www.inapam.gob.mx/index/index.php

[Tretyakovskii]

I'd always known that you have to take a reduction in Social Security retirement benefits when your earnings exceeded an allowable limit (just over $14,000 USD, as it now stands); but, here's one I just, painfully, discovered: if you work abroad more than 45 hours in a month in work which is not covered by social security (that is, you're not contributing to the system), or if you have your own business abroad, whether or not you're actually making any money, your benefits are suspended for each month of such work.

There are reporting requirements, as you might suspect. If you work beyond the limit, or have a business, you have until about the 15th of the following month to notify social security, or your nearest embassy of this fact. In addition to losing the month of benefits, for each month you exceed the limits, they may impose an additional penalty of one month's loss of benefits, as I understand it, for any failure to report that appears willful.

Looks like I'm going to have some money to repay. For those who are interested in knowing more, you can go straight to the "horse's mouth".

http://www.ssa.gov/pubs/10137.html

[Isla Guapa]

I've always wondered how the IRS would find out that you're earning money while living abroad and receiving Social Security benefits, especially if you're working for yourself.

[Isla Guapa]

I love my INAPAM card! In Mexico City you also get discounts on admission to movie theaters. In addition to discounts, I use it when I need a photo ID, for instance, to enter a private or public office building.

[Tretyakovskii]

[Isla Guapa]

[Oreen Scott]

And why wouldn't you tell them?

[Tretyakovskii]

[Oreen Scott]

Well said, Tretyakovskii. Compliance keeps one's life in order and one's conscious free of guilt.

[Tretyakovskii]

Some will be in the clear on this (the requirement to report foreign work to the Social Security Administration), in any case.

For those who didn't look at the webpage I mentioned, earlier, here's an excerpt from it:

[Isla Guapa]

Tretyakovski, thanks for all of this information, especially the bit about not needing to report income for any month that you worked less than 45 hours. Now I won't have to worry about IRS agents coming to my apartment to take me away!

[Tretyakovskii]

[Tretyakovskii]

I don't think I have too much to add to what I'd learned, earlier: there is a deduction from benefits due an early retiree for each month in which a person has foreign work or employment, or self-employment, exceeding 45 hours per month, that is not covered by social security.

Any month in which this limit is exceeded triggers a requirement for a report to the Social Security Admin (which apparently can be done by a phone call to the Embassy) of the foreign work. Benefits will be held for the subsequent month. A report is required each month for which there is such work. The possible penalties for non-reporting are substantial, as you might suppose, and can result in a loss of benefits.

The good news is that it seems that those months for which benefits are deducted go back into the "kitty" and, at full retirement age, the monthly benefit is automatically recalculated and the monthly benefit amount increased.

Interestingly, the Social Security Administration has it's rules, online. Do a websearch for, Social Security Handbook.

Even more interestingly, the SSA has its operations manual online for all to see, as well. For those who have wondered, well, how would they ever know..., it may be a little hit or miss, but here's how they do it: https://secure.ssa.gov/apps10/poms.nsf/lnx/0302655010

For those who'd like to know more about how they deal with the reporting requirement, read here: https://secure.ssa.gov/apps10/poms.nsf/lnx/0302605020

[fladude]

Self employment gets the same deduction as income...... At least as far as the income goes.... you don't have to work for someone else to earn income.... I ran my own business for a decade in the USA. It was all income.... In terms of other taxes, I am not going to spend weeks of my time looking through the tax code to find out what I might or might not owe. If the Government really wants me to pay taxes it can create a simple tax code.

Anyway I wouldn't report a few hundred dollars I earned overseas and I certainly don't feel guilty about it in the least nor does this complicate me in any way.