If I have a retirement visa from USA do I pay income tax on my retirement money in Thailand
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TLDR : Answer Summary
Many commenters agree that retirement money received from the USA is generally not taxable in Thailand for expatriates holding a retirement visa. However, as a US citizen, individuals are subject to US taxation on worldwide income, including any interest earned on Thai bank accounts. It is recommended to consult a tax advisor for specific guidance.
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Only pay tax in usa if income above a certain amount like ss, pension other
income etc. Also if you have over i think $10,000 usd in thai savings account it needs to be reported at u s income taxe time but it dont mean you get taxed unless your income is high. I know its bull $hit i report like $50 interest income but rax preparer charges me $30 for each form to fill out , some joke it is
George *************
I realize do-it-yourself is not everyone's cup of tea, but you can use TurboTax (and other similar) to file US Federal Income tax return for free from this site if your Adjusted Gross Income (AGI) is less than $72,000. The simpler your tax situation the easier it is. ;-)
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Reply to
George *************
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JD ********
The poster's style left it open to interpretation... I thought the question was - will I pay tax to Thailand on my retirement money brought into Thailand... I say no to that interpretation of the post.
George *************
Yes, the OP was ambiguous and vague enough to cover several possible interpretations.
Reply to
George *************
Reply
JD ********
I have read most all the answers and believe they are lacking in one way or another.
Wayne ********
retirement visa means you cannot work or earn income in thailand so why would you pay tax. there is a provision in thai tax laws from memory that says money earned on assets or investments in the previous year can be transferred to thailand for living expenses so this seems to be the so called loop hole, thou others will comment something differing maybe they right maybe they wrong but i can tell you with all the guys that i socialise and golf with the ones that are retired here and there are many dont pay any taxes in thailand.
being on a retirement visa or extension of stay means you cannot work in Thailand but does not mean you cannot earn income in Thailand.
In fact, many people with an extension of stay for retirement in Thailand keep money in a Thai bank in excess of 800,000 baht which earns interest. That interest is reportable both to the IRS and Thai revenue department as income. If it's below the filling threshold you may not have to file a Thai income tax return, but by doing so you may be able to recover any tax withheld from the interest income you received. That interest income is reportable as a tax liability on your US Federal Income Tax Return (if you are required to file). You may be able to claim the Foreign Income Tax credit on that, but you will not be able to claim a Foreign Earned Income Exemption (FEIE) because interest income is specifically excluded from that.
not sure what u mean but as far as i know if i on retirement visa u cannot earn a baht in thailand from anyone xx bringing your own funds in for personal expenses is allowed i been doing it for 15 yrs like all my other mates xx i am not talking about interest here that’s incidental in 800k buys me a bottle of nice wine
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Wayne ********
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Hettie *******
How do you go about to get your US mail if you retire in Thailand? From my understanding you have to have a mailing address if you have money in a US bank account...I know expats use a mailing address of family but what if you do not have family in the US?
Hettie *******
You have to have a mailing address in US for IRS and social security mail and info....right?
George *************
The alternative is for me to use my Thai address and have the mail sent to me in Thailand. There are three problems with that alternative:
1) While mail delivery is generally OK in Thailand if you are unfortunate enough to have your letter misdelivered to the wrong address it may just languish there forever (the discipline required to return mail to the post office if it has been misdelivered in Thailand appears to be an underdeveloped skill 😉 ).
2) I don't want my US financial institution to find out that I live overseas and want to restrict or close my account. There have been reports of this happening. For example, it is generally not possible for a US company to sell mutual funds to someone who doesn't reside in the US for legal reasons. I don't want to be encumbered with such a restriction. I regularly buy US mutual funds and I live outside the US.
3) I want to be able to open new accounts in the US and this often requires that I have a US address. Note: businesses if they are interested can determine that what I have is a CMRA rather than a "real" residential address, but I have been able to open accounts (for example, Charles Schwab Checking Account) with only my CMRA.
Agree, bad idea to put a forigne address on a US bank account. They'll almost 100% close your account when they audit their system.
Reply to
Garrett ***********
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George *************
Haha, the above may actually work. ;-)
I use TravelingMailbox.com, which is a commercial mail receiving agent (CMRA). They provide me with an address to use, receive my mail, scan the envelopes so I can read online, scan the contents of the mail if I request it, and forward the mail to me if I request it. I find that 99.9% of the time simply reading the scanned contents of the mail online is enough and I don't need to have the mail forwarded to me. The exception to this is when I get a new credit card. I have it sent to them and forwarded to me in Thailand as I do not wish my US financial institutions to know that I don't reside in the US.
There are other CMRAs that do the same thing. I pay about $12/month (on an annual basis) for this service from Travelling Mailbox which I have used for more than 8 years.
I'm signed up for electronic communication with every entity I do business with and even then I still receive snail mail. For example, if I change my phone number at my IRA custodian they will send snail mail notifying me of the change, which I guess may be a legal requirement or at least a security precaution that they follow.
I've been out of the US 4 years, have a few bank accounts, have never needed to get mail from them.
I just have my old address on file with them. Every now and then I'll get a message or an email " we tried to send you mail," I just update my address with the same address and they don't bother me anymore.
Reply to
Garrett ***********
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George *************
It has nothing to do with where you are a tax resident and nothing to do with where you live or how long you have lived there, but everything to do with the fact that you are a US Citizen. As such your worldwide income is subject to taxation by the US Government.
Yes, you need to declare on your US tax return interest income generated from keeping money in a Thai bank, which is often a requirement for obtaining and maintaining a long-term extension of stay in Thailand.
Yes, you may be able to claim a Foreign Tax Credit for any taxes actually paid to Thailand on this interest income.
No, you cannot claim the Foreign Earned Income Exclusion (FEIE) on this interest income because it is specifically not "earned" income.
These answers are further explained at the following links:
In THEORY, if you live more than 180 days in Thailand and transfer money into Thailand, this money is ASSESSABLE if it is transferred in the same year as it is earned. income earned, eg. Pension payments. However in PRACTICE this law is never enforced.
Janin ******
No
Kool *******
The money you have coming in from overseas to meet your monthly financial requirement for your retirement visa extension, at least bt65,000 a month, is not taxed in Thailand, as you did not make it working in Thailand. To better understand this, under a retirement extension you can not work, but you can receive a pension/retirement money from outside of Thailand, so it is not taxed in Thailand.
Gene **********
Paul ********
Garrett ***********
You're a US citizen, you pay taxes on all money earned in the US reguardless of where you live in the world.
You don't pay taxes on your US retirement money in Thailand. You pay taxes in Thailand on money earned in Thailand, either from work or Thai investments.
I had my tax agent (in The US) ask me if I had foreign accounts or investments. That was the first time ever. I didn’t Pursue further. Guessing I would have to pay tax on that too, humm. Good ole double dip.
If you have more than $10k usd in a foriegn bank account you must file an FBAR.
Reply to
Garrett ***********
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Garrett ***********
David You're talking about 2 different things, of course having nothing to do with what the OP asked, or what this comment asked. You just had to start an argument about something else because you wanted something to argue about. It's getting annoying really quick.
Wrong, you pay tax on all money earn IN the US, regardless of where you live in the world. The FEIE is only applicable to the first $107k earned OUTSIDE of the US.