Given, they are only about 15% of my income, but I know millions of legal, but non-citizen residents move out of USA after retiring and receive USA social security payments because they contributed to SS during work in USA. They move to low or no income tax country. Well, I am retired US citizen and only income is small SS and disabled veteran pension total $650 and medium pension from Fed and state civil service. Going broke and wonder if moving out will help. Big question is will I lose pensions if taking a duel citizenship. Maybe not Monaco, but Canada. My mother was Canadian, so I believe I can claim Canadian citizenship. Mostly I have to save paycheck from local, State and Federal taxes w/o losing small income I have or my US citizenship. Any smart people here follow that and have good infomation? Thanks
United States - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Problem 1) US Citizens are taxed on their worldwide income whether they live in the US or not. You would have to renounce your US Citizenship and become a citizen of another country. Problem 2) Taxes in the US are LOWER than most other developed countries. By the way, you can not just move to Monaco. They don't allow just anybody in.
2 :
you will loose all your benefits
3 :
1. Monaco isn't interested in granting you permanent residence status. You need a net worth in excess of around $20 million before they'd consider your application. 2. As a US citizen, you are subject to US taxation on your world-wide income so residing in Monaco won't get you off the hood for US taxes. 3. Surrendering US citizenship solely to avoid US taxes won't get you off the hook for 10 full years. 4. If you want to surrender your citizenship, you'll have to pick some place other than Monaco. While Monaco might grant you permanent residence, citizenship is out of the question. 5. Most other countries -- at least those that you might want to live in -- have higher taxes than the US does so moving there will cost you in the long run. The overall cost of living in most of those countries will be higher as well. 6. Surrendering your citizenship may cost you some of those pension benefits. 7. 15% Federal income tax reverse engineers to over $65,000 per year. Even if you're kicking in 5% on state income taxes, it still crunches to around $50,000 per year. If you're having trouble making ends meet as a single person on that income, try a financial counselor.
