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chucdoti

Sep 16, 2012, 10:43 AM

Post #1 of 11 (8291 views)

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Social security, pension - Is Retirement income taxed?

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I recently read an article from a seemingly good source on the subject of countries that collect taxes on retirement income and Mexico was in the group that does collect. There wasn't enough detail to determine how much or if there were qualifications that exempted an expat from thoses taxes. Does anyone want to shed light on this subject?

I searched the forums on the subject and the latest I was able to find was in 2009. I'm sure there are updates.
(future expat from USA)

Thanks!



sparks


Sep 16, 2012, 11:46 AM

Post #2 of 11 (8278 views)

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Re: [chucdoti] Social security, pension - Is Retirement income taxed?

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If your income comes from another country ... that's where you pay your taxes, not Mexico.

5:46 AM I made this post?? That's not even GMT. It's actually 1:46PM in most of Mexico

Sparks Mexico Blog - Sparks Costalegre


(This post was edited by sparks on Sep 16, 2012, 11:49 AM)


La Isla


Sep 16, 2012, 12:10 PM

Post #3 of 11 (8268 views)

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Re: [sparks] Social security, pension - Is Retirement income taxed?

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I receive two pensions from the US, one from Social Security and one from a former employer, and I claim this income every year when I file my federal income tax return with the IRS. Since I do work in Mexico, as a free-lance English teacher and translator-editor, I pay taxes here every month on my Mexican income, with the help of a friendly accountant.


chucdoti

Sep 16, 2012, 1:20 PM

Post #4 of 11 (8252 views)

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Re: [La Isla] Social security, pension - Is Retirement income taxed?

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Thanks for the replies! La Isla your example sounds exactly as mine will be when I retire from the US. I'll have my social security and a pension from a previous employer. Of course, I realize all things are fluid and subject to change at any moment! :D


La Isla


Sep 16, 2012, 1:57 PM

Post #5 of 11 (8242 views)

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Re: [chucdoti] Social security, pension - Is Retirement income taxed?

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You're welcome! Things aren't that fluid, keeping in mind how long it takes to change anything at the federal level of government. I would just assume that things will stay the way they are into the foreseeable future, and if they change, then we'll just deal with it.


viktoremski


Nov 15, 2016, 12:39 PM

Post #6 of 11 (6102 views)

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Re: [La Isla] Social security, pension - Is Retirement income taxed?

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Hello La Isla,
Regarding this old post from 2012, you mentioned receiving pension from your former employer. Do you have to pay state taxes on this pension, to the state that your former employer is located in? Is there anything one has to do (prove foreign residency to the ex-employer or the state government) in order to avoid paying the state taxes?


rvgringo

Nov 15, 2016, 2:09 PM

Post #7 of 11 (6094 views)

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Re: [viktoremski] Social security, pension - Is Retirement income taxed?

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When you sign up for your pension, specify no taxes to be withheld. I think you can do that, or even change it at any time. No taxes are withheld from my pension; my choice at retirement. Then, make sure that you do not live, or have a mailing address, in a state that has income taxes, and you should be OK.


mattoleriver

Nov 15, 2016, 2:45 PM

Post #8 of 11 (6090 views)

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Re: [viktoremski] Social security, pension - Is Retirement income taxed?

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Here's a link to state-by-state info. There are several similar sources on the web.
http://www.kiplinger.com/...o-taxes-on-retirees/


viktoremski


Nov 15, 2016, 2:46 PM

Post #9 of 11 (6089 views)

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Re: [rvgringo] Social security, pension - Is Retirement income taxed?

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Thanks for your reply. I will do what you just said. Still, in the past, someone on this forum mentioned that Secretary of State needs to be notified of one's intention to remain outside of the state. Unfortunately, I can't find that post any more.


rvgringo

Nov 15, 2016, 2:58 PM

Post #10 of 11 (6086 views)

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Re: [viktoremski] Social security, pension - Is Retirement income taxed?

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Whenever we moved from a taxing state, we were able to follow the instructions to file for a payment of pro-rated taxes to cover the partial year of residence. The tax return indicated our new address and we never had any claims for taxes from previous states.
I think some folks worry too much, or overthink some things, when there is no need. When you move; just move. Everything will work itself out quite naturally. We have lived in many different states in the USA, and in a couple of foreign countries, as well as being mobile at sea or in a motorhome for years at a time with a mailing service in a state without income taxes. Easy.


viktoremski


Nov 15, 2016, 3:32 PM

Post #11 of 11 (6084 views)

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Re: [rvgringo] Social security, pension - Is Retirement income taxed?

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Makes sense. Thanks!
 
 
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