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Tax.appeal.168, Tax Accountant
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Experience:  3+ decades of varied tax industry exp. Tax Biz owner
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Has an American citizen being deducted tax from his retirement

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Has an American citizen being deducted tax from his retirement pension but living permanently abroad, the right to any refund for hospital costs? The person does not participate in any "Obama care" in his home country, only having a minor in pat ion coverage with a private English company?
Welcome. Thank you for choosing us to assist you. My name is XXXXX XXXXX my goal is to help make your life, a little... less taxing.

The question inquiry shows that you are in Thailand, I shall be visiting there soon. As a U.S. citizen you are allowed to deduct qualified medical expenses that exceed 7.5% of your AGI. For tax year 2013, that percentage has changed to 10.0%. However, if you are 65 years or older, the percentage remains at 7.5%. SEE BELOW:

If, for a taxable year, you itemize your deductions on Form 1040, Schedule A (PDF), you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse, and your dependents. You may deduct only the amount by which your total medical care expenses for the year exceed 7.5% of your adjusted gross income. For years beginning after December 31, 2012, you may deduct only the amount by which your total medical expenses exceed 10% of your adjusted gross income. You figure the amount you are allowed to deduct on Form 1040, Schedule A. However, individuals age 65 and older (and their spouses) are temporarily exempt from the increase. This exemption for seniors applies to any tax year beginning after December 31, 2012 and ending before January 1, 2017 if the taxpayer or the taxpayer’s spouse attained age 65 for the tax year.


You may als want to refer to the IRS Pub 502 for additional information.

IRS Pub 502:

Please let me know if I can be of further assistance to you regarding this matter.

Thank you again or choosing this Q&A service for assistance.

Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3729
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
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Customer: replied 3 years ago.

As you might have understood, I'm not an American citizen, only had a Green Card. I studied up to the level of MBA/PH.D in LA, and later being responsible for our employes with Elf/Total, as well as companies like Texasgulf. Myself a Norwegian national ,(not lived in Norway since May 1996) now just a retired living in Thailand, and secondly for health reasons. As of January, 1. 2010, Norway's very leftist Governement, "read green,"sent an unsigned note to us living abroad. We here bye informs you that we will deduct 15% in "source tax" from Nationale, Collective (company) and private pensions saving you being paid, or deposited in an account in Norway. Private pension savings, not tax, deductable if living in Norway! The Kingdoms of Thailand and Norway has a tax agreement, "retired not being taxable in Thailand, agreement 2002/3 and valid at the end of this year. Norway violated this binding International agreement, and without any sort of negotiation with their counterparts in Thailand. All verified by myself, this as, I could phone the past PM, Kun Abhisit, this as well as now PM Jingluck Shinawatra. So, and based on what iv already e-mailed to you; Tax, and for what? For your information, you can also visit my web pages on which I elaborate this subject; Tax, and for what? Sorry if, as I often use both English and Noivegian. To me, this is firstly, comparative, as Norway now has got a blue Governement,but will it take better "care" for us fugitive, that Obama? Iv just listened ,FOX 3 + houers to the hearing og secretary Sebilius, "sorry" for her!

Hello again,

With all due respect, I will not get into a political discussion here. Even if you are not an American Citizen, you did indicate that you are a Green Card Holder. Valid Green Card holders have the same tax rights as American Citizens, which means that what I wrote to you previously regarding the medical deduction for U.S. tax returns still stands if you meet the requirements. Unfortunately, I am not familiar with Norwegian or Thailand tax laws, so I cannot comment on what their procedures are regarding pensions, etc. Your initial question was as follows:

Q: Has an American citizen being deducted tax from his retirement pension but living permanently abroad, the right to any refund for hospital costs?

A: The right to any refund for hospital costs? That is what I addressed. As far as the pension being taxable or not, this was not part of the initial inquiry. I feel that I answered the question that was presented. As for the other matters, I am unable to assist you.

Thank you again for using this Q&A service for assistance.
Customer: replied 3 years ago.

The 20% being deducted by Norway. People having a Green Card, but not living in the USA, are not taxable to the said (none US nationals.)

The USA as well as Norway has both tax agreements with Thailand, and Thailand does not claim any tax from elderly qualifying for a retirement permit. Tax to be paid to the country in which you are residing!

Thank you for the information Justin. I am aware that the U.S.has tax agreements with certain countries. I could be mistaken but I am sensing that you are not happy with the U.S.,...which is a personal matter. As I do not like the direction that this conversation is going in, I will opt out at this point. Enjoy your day. I certainly intend to enjoy mine.
Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. CPA,PFS,QFP,GMMA.

I don't think you will like my answer. It is however straight forward and addresses your concerns.

You have no right to any refund of hospital costs. There would be a tax deduction against US taxes, unfortunately, you don't pay those so there is no current deduction.

As a CPA licensed in the US I realize that is NOT the response you had hoped for. Unfortunately is the truthful and direct answer to your question.