I am still confused. I have lived here in PR for 2 years. I am retired and on social security only. Do I have to file taxes anywhere? fed? state? PR?
Taxes again
fruitfly
07 April 2017 02:40:35
11
ReyP
07 April 2017 03:23:13
5509
Based on what you stated above, You are required to file Federal, depending on how much you get, you may end up paying nothing but you are still required to file. You should have filed 2014 and 2015 Federal taxes and maybe 2014 and 2015 state tax. Your year goes from Jan 1 to dec 31, o it all depends when you moved to PR for state taxes. Either way you should have done Federal every year. You may have some explaining to do if you failed one.
If you made no money from a PR source you do not pay any PR taxes and do not have to file either.
Don't forget to file Federal for 2016, which is due soon.
ReyP
07 April 2017 03:30:10
5509
A lot of expats have the same situation, they have Social Security and maybe some other pension from a company in the states and maybe a 401k or a 403B in the US that they draw from, in all of those cases, only Federal is due after spending the first year in PR that started January 1. Prior to that the old rules apply.
If you move your 401k or 403B to PR things change again or if you have a Roth IRA or some other post tax plan that you move to PR, in any of these cases check with a tax agency or call the IRS.
For most people it is best to keep the Roth IRA, 401k or 403B in the states and draw what you need from them from time to time so only Federal is all you have pay.
fruitfly
08 April 2017 22:23:53
11
Thanks Rey, I really apreciate your reply.
ReyP
08 April 2017 22:51:52
5509
I will be in the same boat once I move to PR.
I will have Federal for the remainder of my life, Massachusetts state taxes for dates prior to the move in the last year.
My income will come mostly from Social Security and occasional draws on my IRA which I hope will be rare. Once I reach 70 1/2 I and everyone else is required to draw from their retirement funds a certain percentage which varies based on estimated longevity.
I plan to head to PR around mid 2018, so that means I will file state tax for 2017 and part of 2018, and obviously Federal as usual. But once I file my 2018 taxes (in 2019) there will be no state taxes or PR taxes either. Since I will be mostly getting Social Security, only part of the Social Security is taxable, the worst case is 85% of the Social Security being taxed or less depending on how much in total you make a year. If you have other sources of income once added together, there is a table that states what percentage of the Social Security income is taxable. Also as you get older, (age 65+) you get an additional deduction if I remember correctly so your taxes go down more.
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