Ex pat income tax deductions

edk0514

New member
Mar 15, 2008
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I have gone to irs.gov but i still don't understand what deductions i am allowed while living abroad.
I am a US citizen, retired and living in Dominican Republic.

Any advice would be appreciated .
 

mike l

Silver
Sep 4, 2007
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I have gone to irs.gov but i still don't understand what deductions i am allowed while living abroad.
I am a US citizen, retired and living in Dominican Republic.

Any advice would be appreciated .

If you are out of the country for more than 1 year, the first $87k approximately is tax free....that's the best deduction you can get but it's just as easy to call a cpa or call the IRS they are easy to speak with.
 

edk0514

New member
Mar 15, 2008
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If you are out of the country for more than 1 year, the first $87k approximately is tax free....that's the best deduction you can get but it's just as easy to call a cpa or call the IRS they are easy to speak with.

THANK YOU !! I will call them Monday.
 

porkman100

Gold
Apr 11, 2010
7,468
39
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Edk...Any "business" deductions can be taken against your u.s. based income.
For example you buy a business with the intention to make money in d.r. and expenses related to that business are deductible.
A business could be an apartment house or a colmado.
 

mike l

Silver
Sep 4, 2007
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he does not say anything about having income in the dr or even a business so I think until he gets more specific, no one can really answer. and as he says, he is retired so maybe there is only soc.sec and maybe a pension.

And this why you I don't respond to these questions.....Income from the DR was not the real question...

I give up with U people !
 

karlheinz

New member
Oct 2, 2006
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From my understanding, it's only the state tax's that can be deferred if your outside of the US - If your income is earned from within the US there's no way out of paying taxes...regardless of where you live in the world.
 

windeguy

Platinum
Jul 10, 2004
39,477
4,353
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From my understanding, it's only the state tax's that can be deferred if your outside of the US - If your income is earned from within the US there's no way out of paying taxes...regardless of where you live in the world.

The first 87K of income earned OUTSIDE of the US is exempt from US Federal taxes. Earned INSIDE the US it is not exempt.
 

jaguarbob

Bronze
Mar 2, 2004
1,405
51
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I am retired here with ss and military pension.I have to pay my ss tax and military pension tax,which is automatically taken out.
bob
 

LTSteve

Gold
Jul 9, 2010
5,449
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If you are retired and not working in the DR and have no income earned in the DR than you will not have any deductions concerning the DR.

LTSTeve
 

LTSteve

Gold
Jul 9, 2010
5,449
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In regards to tax issues in the US there is plenty of info on expats living permanently in the DR just google it. You don't need to go the the IRS web site.

LTSTeve
 

edk0514

New member
Mar 15, 2008
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Many thanks to all of you !!
I am retired on Social security and I.B.E.W. pension !
So, if i understand this correctly, i will pay taxes because my money comes from USA funds, and not earned in Dominican Republic.
 

LTSteve

Gold
Jul 9, 2010
5,449
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Yes, if you are receiving retirement income from a source in the US than you declare that on your US income tax as you normally would. You do not have any exemtions because you did not earn the money working in the DR. Very simple.

LTSteve
 

Celt202

Gold
May 22, 2004
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Get the advice of a tax advisor. Don't make decisions based on opinions on a public message board.
 

LTSteve

Gold
Jul 9, 2010
5,449
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38
You don't need a tax advisor. You can go to Turbo Tax and do it on line. Very simple when you have nothing to really deduct, unless you still pay property taxes and interest on a mortaged property in the US.

LTSteve
 

flyinroom

Silver
Aug 26, 2012
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[video=youtube;1h1oRP7FfBw]http://www.youtube.com/watch?feature=player_detailpage&v=1h1oRP7FfBw[/video]


Ah yes, the dreaded taxman.....