this is from IRS website
Sure, if you make money in the DR the exemptions apply, but your retirment/pension is taxable by Uncle Sam. So is any interest or dividend derived from a foreign account. I don't think the state of CA gets a cut but I will check that out. I am not asking what people actually do, just wanted to know my legal obligation to the government.
BTW, thanks for the info, I didn't know money changers would take checks.
the following is excerpted from the IRS website
http://www.irs.gov/publications/p54/ar02.html
6) I am a U.S. citizen who has retired, and I expect to remain in a foreign country. Do I have any further U.S. tax obligations?
Your U.S. tax obligation on your income is the same as that of a retired person living in the United States. (See the discussion on filing requirements in chapter 1 of this publication.)
7) I have been a bona fide resident of a foreign country for over 5 years. Is it necessary for me to pay estimated tax?
U.S. taxpayers overseas have the same requirements for paying estimated tax as those in the United States. See the discussion under Estimated Tax in chapter 1.
Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U.S. taxation.
Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax.
The first installment of estimated tax is due on April 15 of the year for which the income is earned.