USA Taxes yr1 retired and Social Security

I also used a relatives address to file in the states until last year. Last year I filed with my foreign address here due to my relative moving from a no tax state to a very strict tax state. I was paranoid that Virginia might say I owe them a state tax since I used a address there and maybe later on opening a bank account etc. They probably cant unless I had a Drivers license from there, but didnt want to take a chance. I didnt see any benefit from filing with my foreign address other then avoiding any state trying to make a claim on me. As far as SS/Medicare I have no clue how that works, guess i will find out in a few years...

    Biggest question: Should I file with foreign address?
I'm having trouble finding guidance on this. I do have a US (Nevada) address and bank accounts. All my money is basically in the US and my Social Security goes to my US bank.
Possible caveats?: I will be 65 later this year. So Medicare doesn't apply to me yet! BUT, would filing as foreign resident now make it easier to avoid the Medicare deduction later in the year when I turn 65?
I do not have any bank accounts in the Philippines yet. I was here the entire year of 2023. I'm on tourist visa still. My Social Security is direct deposit to one of my US bank accounts.

I was originally going to just file with my US address (sis-in-law). But the thought about Medicare later this year came to mind. Along with maybe there's some weird benefit filing from overseas with a foreign address?

Thanks for any guidance based on your experiences.

Larry
   

    -@Larry Fisher

I file my 1040 with my Philippine address. It has been years since I visited my previous state, and I don't want to officially declare residence there even though I keep up my drivers license there. Having a DL from that state, in itself, does not make me a resident; it would only support any claim that I am a resident. However, there is nothing else to back up that claim because I do not live there, I only visit once in a while. You are allowed to choose a state for your USA DL or else you lose the driving privilege. Similarly, that last state of residence is the state you register to vote in for federal elections, again not making you a state resident. There has been no problem doing this. But for Social Security, bank and credit cards I still use a USA address. Again, no problem as long as you deposit into a USA bank. The only thing that might concern people is that the previous state will consider you a taxpayer if you declare to SSA your residence in that state. My answer is that, yes but my presence there is generally zero days and this state taxes based on days of residency in a given year. If I do visit, I am there at a hotel, Airbnb or child's house as a visitor and not a resident. I understand that California has very strict rules and this thinking probably would not apply there.

@danfinn

My last residence and declared residence up until now is Nevada, a no state-tax state. No issue there.

But I'm now thinking about Medicare and how it comes out of my Social Security when I do turn 65 in October. I'd like to keep that income. I'm wondering if I open up a can of worms declaring Philippines as my residency now when I really haven't completed any of the processes required to be a "resident" i.e. still on tourist visa. Own a car in my name but no bank account. And I still use US banks (2) and trade stocks, buy T-Bills from the Fed (legal even for foreigners though) and my SS is deposited in the US. I just remitly cash when I need.

    @danfinn
My last residence and declared residence up until now is Nevada, a no state-tax state. No issue there.

But I'm now thinking about Medicare and how it comes out of my Social Security when I do turn 65 in October. I'd like to keep that income. I'm wondering if I open up a can of worms declaring Philippines as my residency now when I really haven't completed any of the processes required to be a "resident" i.e. still on tourist visa. Own a car in my name but no bank account. And I still use US banks (2) and trade stocks, buy T-Bills from the Fed (legal even for foreigners though) and my SS is deposited in the US. I just remitly cash when I need.
   

    -@Larry Fisher

You might want to try to contact Mark Thornton who has YouTube channel "Every Man Has a Story". His email should be somewhere at his channel info. He managed to stop the medicare deduction and he was still on a tourist visa. I think medicare part is voluntary even for UD residents; maybe you just decline to sign up.

           When you turn 65 you can automatically get Medicare Part A at no charge, Medicare Part B and all the others are optional.  Do not know what the monthly charge is for Part B, was $170/month in 2023.  You can opt out of Part B if you like, the only caveat is that if you opt out and decide ti opt in at age 67, then at that point SSA will determine how much you did not pay them for 2 years, and spread that out over your expected remaining life and add that to your monthly charge.  Suppose for those two years you failed to pay them $3,000 and your life expectancy was 100 more months, then they would withold an additional $30 a month from your SS, they would therefore expect to get back their two years which you did not pay, even though you had no coverage.  Be happy they do not charge interest, but if you live more than the 100 months you keep paying at the higher rate.

        @danfinnMy last residence and declared residence up until now is Nevada, a no state-tax state. No issue there. But I'm now thinking about Medicare and how it comes out of my Social Security when I do turn 65 in October. I'd like to keep that income. I'm wondering if I open up a can of worms declaring Philippines as my residency now when I really haven't completed any of the processes required to be a "resident" i.e. still on tourist visa. Own a car in my name but no bank account. And I still use US banks (2) and trade stocks, buy T-Bills from the Fed (legal even for foreigners though) and my SS is deposited in the US. I just remitly cash when I need.        -@Larry Fisher

You might want to try to contact Mark Thornton who has YouTube channel "Every Man Has a Story". His email should be somewhere at his channel info. He managed to stop the medicare deduction and he was still on a tourist visa. I think medicare part is voluntary even for UD residents; maybe you just decline to sign up.
   

    -@danfinn

Thanks! I found him and sent an email!

Larry

@Larry Fisher

Sir,

I am asking you why SSA Manila' it harder to get SSN?

You know bI applied SSN at SSA Manila' I behalf of my late father J B well veterans as U.S.F.F.F E when Philippines territory of America  from 1898 up to 1946.

I use VA claim number of my late father  for SSN  the SSA fbu Manila' not considered. Our parents never to receive any benefits From VA and SSA Manila' due to denied.

Being a SSA filer retired employee

How to get SSN? From SSA Manila'.

Please inform us

          R✓

While not up on US law and protocols why not simply talk to the US embassy, take your case there. Legit paperwork/proof of your claim? It's a unique ask and requires professional help and not an expat site.

Good luck.

Cheers, Steve

@bigpearl

I talk already at embassy but SSA Manila' did not relocate my claim for SSN The forward my case to VA now the VA did not reply about our claim.

@Larry Fisher

Medicare A is free and Medicare B you can opt out of...I did

This ^^^

Especially if you are sure you will not be going back, and/or needing to seek treatment in the US. I personally would never give up that option. It's a messed up system, expensive, etc.. but still some of the most advanced health care in the world.

    @Larry Fisher
Medicare A is free and Medicare B you can opt out of...I did
   

    -@Filamretire

So when do you opt out? I assume you do it online at ssa dot gov? Asking because I haven't seen the option yet.

        @Larry FisherMedicare A is free and Medicare B you can opt out of...I did        -@Filamretire

So when do you opt out? I assume you do it online at ssa dot gov? Asking because I haven't seen the option yet.
   

    -@Larry Fisher

As I recall, you opt-out of Medicare B by simply not signing up at age 65. If you decide later that you want to sign up, you can but you are penalized. It seems like default is to not be signed up unless you select the option to join. In my case I retired at age 67 and was covered by employer insurance until retirement and almost missed signing up because of that.

danfinn said . . .  .  If you decide later that you want to sign up, you can but you are penalized.

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I recall reading sometime ago, I believe if you opt out of part B and sometime in the future you opt back in there is a substantial penalty. I don't recall the figures but it could negate some of the savings.

Make sure you have your glasses on when you look into that crystal ball on what health decision you may make.

    danfinn said . . .  .  If you decide later that you want to sign up, you can but you are penalized.
********************
I recall reading sometime ago, I believe if you opt out of part B and sometime in the future you opt back in there is a substantial penalty. I don't recall the figures but it could negate some of the savings.
Make sure you have your glasses on when you look into that crystal ball on what health decision you may make.
   

    -@Enzyte Bob

it ain't good in the Phils, and I ain't goin back. So I don't care.

I had part b for a few years but I always used the VA I ask why they didn't bill Medicare, they said they can't , but now I hear they can bill Medicare, before what I paid for Medicare was deducted from my income total at VA

So, the other part of my question. To keep my US address or not, doesn't matter tax wise, is this correct?

    So, the other part of my question. To keep my US address or not, doesn't matter tax wise, is this correct?
   

    -@Larry Fisher

It doesn't matter for Federal tax. You can give either a US or foreign address and your tax liabilities will not change. Ensure that, for capital gains and other income, you take advantage of appropriate tax credits to avoid double taxation.

Larry Fisher asked . . . . So, the other part of my question. To keep my US address or not, doesn't matter tax wise, is this correct?

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Concerning Tax (IRS) & SS a US address is a benefit, you can not rely on PhilPost for timely delivery of important mail to you in the Philippines.

Side note: As drug sniffing dogs can find cocaine in your luggage, so can PhilPost employees sniff out money in your mail.