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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10140
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I will be retiring to Thailand at the end of 2016. I have 3

Customer Question

I will be retiring to Thailand at the end of 2016. I have 3 small (totaling approx. $50k) tax deferred annuities and a pension through my Union. If I cash out the annuities and if I remain outside the US for 331 days in 2017, drawing a monthly pension of approx. $3200, what kind of tax liabilities should I expect?
Submitted: 3 months ago.
Category: Tax
Expert:  Lane replied 3 months ago.

Hi David. My name's Lane. I can help with this one.

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As a U.S. (that''s my assumption here. Tell me if this isn't so) you are taxed on all worldwide earnings, regardless of your location.

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What it sounds like you are referring to is the "Foreign Earned Income Exclusion," (FEIE).

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So Sorry, but pension and annuity income (or withdrawals for such) is nor considered "earned income," for this purpose.

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You can read more about that here: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-what-is-foreign-earned-income

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If you ANNUITIZED the annuities, then only a portion of thenpayment will BE taxable income (the amount above what's called the exclusion ratio - we can talk more about that, if you like). But again, IRS considers this as unearned income for purposes of the FEIE.

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If you'd like me to calculate your projected tax, please let me know your filing status (married filing jointly, single, etc) and whether you itemize or not (and if so the ballpark amount of those total itemized deductions) - and I can run the numbers for you

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Lane

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I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

Expert:  Lane replied 3 months ago.

(sorry for the typos - the syste, isn't letting me edit for some reason)

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Regardless, let me know your filing status (as different brackets apply) and I can give you a more specific answer regarding the tax liability.

Customer: replied 3 months ago.
Thank you Lane.
Expert:  Lane replied 3 months ago.

You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That’s the only way JustAnswer will credited me for the work here