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May 14, 2025
Question

Moving

  • May 14, 2025
  • 3 replies
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I'm planning to move outside the usa. Do i still need to file taxes. I am currently collecting social security and i trade stocks. Thanks.

3 replies

KarenL4
May 14, 2025

Yes, assuming you are a US Citizen, you still have to file taxes if you meet the filing requirements.   Here's an article that should help you figure that out. Note: If your only income was social security, you would not have a filing requirement. However, when additional income enters the picture (e.g., interest, dividends, stock sales, other pensions), you may have a filing requirement and it's possible some portion of your social security becomes taxable.  Here's something that explains that.  This article also does a great overview on taxes for expats!

Hope this helps and enjoy your new home!

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Regards,

Karen

TurboTax Expert

 

@osbuntax611 

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May 14, 2025

FIRSTLY, both U.S. citizens and green card holders, or lawful permanent residents, are generally obligated to file U.S. income tax returns and report their global income to the IRS for tax purposes.

SECONDLY, this global income encompasses earnings from both the United States and any foreign countries. The penalties for failing to file or report foreign income and assets can be quite severe.

LASTLY, it is beneficial to file taxes even when no filing requirement exists, simply to maintain current financial records. From personal experience, I have seen instances where taxpayers had to file up to three years of tax returns despite having no initial filing requirement due to circumstances that necessitated proof of income. Having tax returns on file significantly simplifies this process.

Kind Regards,

Franklin
TurboTax Expert

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Employee
May 27, 2025

@osbuntax611 ,

Agreeing with the excellent replies ( and the referred articles) from my colleagues @KarenL4  and @FranklinF , would just like to add the following:

(a)  As a US person  and even with a foreign tax home you are still subject to  FBAR requirements --  form 114 at www.FinCen.gov and only on-line. There is no threshold  change based on tax-home

(b) As a US person you are still subject to FATCA regs. -- form 8938  ( along with your  tax return ). 

See this  ---  Comparison of Form 8938 and FBAR requirements | Internal Revenue Service

Which country are you moving to ?   I ask because of US/that country  tax treaty considerations inclu. taxation of your US social Security by that country.

Is there more I can do for you ?

 

May 28, 2025

Thank you for your reply.  I would like to move to the Philippines.  I also would like to make an early withdrawal from my IRA.  Do i need to pay the 10% penalty because i am only receiving social security disability?

Employee
May 28, 2025

@osbuntax611 

I am not very conversant with pensions/IRAs etc.  My colleague @dmertz  is generally best suited for such topics.

You can also see this from the IRS -- Hardships, early withdrawals and loans | Internal Revenue Service.

Generally, payments from public funds ( such as SSA ) are  taxable only by the payor country.  There is a tax treaty between US and Philippines in effect -- see article 19 & 20 of the treaty  here -- PHILIPPINESWEB.PDF

 

Is there more I can do for you ?