Taxes for USA Retire

Your retirement income here is non taxable  with your residency.

Taxes apply to money earned in the country

Foreign income is exempt

Foreign pension is exempt. NOT foreign income. If you are earning it  from here for WORK then it is taxable by law.

Earning it HERE is different

Passive income from abroad is exempt - as I understand it

Earning it anywhere by labor is  not exempt honey.

Passive income is exempt. By definition that means no labor from you.

Yes - we're saying the same thing....

Published in wrong group. Sorry.

planner wrote:

Foreign pension is exempt. NOT foreign income. If you are earning it  from here for WORK then it is taxable by law.

I would love to read the actual tax code provision on this if anyone knows where to find it, because I don't think that is correct.

Does this mean if you are at your DR getaway for a month and working virtually for a job in the USA or Canada that you would need to pay taxes on the money you earned while on vacay in the DR?

No one cares about a month or two.  They care about expats living here long term and earning money virtually and paying no taxes here!

I have 45 programmers working virtually from here and every single one pays their taxes here because it is the law!

Those who work on contract from here are required to pay taxes on their income.  Some countries have tax treaties and some do not.

But you can't be taxed twice.  If I am working virtually from the DR from the USA (i.e. US Bank) let's say 6 months out of the year, the bank payroll is already taxing that income.  Are we saying that the DR will also tax me over that income?  If that's the case, then we should get a credit from Uncle Sam at the end of year for the tax paid in DR.  Is this for both, residents and non-residents?

Well if the two countries have a tax treaty then credit is possible.  If there is no tax treaty then it's your problem.  This country can and will tax you if they catch you. The key is if they catch you.

vicml1 wrote:

But you can't be taxed twice.  If I am working virtually from the DR from the USA (i.e. US Bank) let's say 6 months out of the year, the bank payroll is already taxing that income.  Are we saying that the DR will also tax me over that income?  If that's the case, then we should get a credit from Uncle Sam at the end of year for the tax paid in DR.  Is this for both, residents and non-residents?

Yes - You can receive a Foreign Tax Credit for taxes paid to the DR on income earned in the US.

https://www.irs.gov/individuals/interna … tax-credit

Also, if you have bank accounts here, be sure to file a FBAR each year and a form 8938 if total foreign financial assets exceed $50k at year end or $75k at any time during the year. Banks here report to the IRS, so better to stay on top of things!

https://www.irs.gov/businesses/small-bu … ounts-fbar