Many US expats are caught by surprise with the reality that they will have to continue filing tax return even though they live in a different country outside of the US. Luckily, we provide information and assistance to help the daunting days of tax filing become a simple task! There are also benefits that do come from obtaining your US citizenship. Let’s look at what is offered for remaining a US citizen overseas!
Open Door to the US
The idea seems nice to move overseas, knowing specifically where you will live and where you will work. US expats can be driven with this ambition to live abroad and, yet, find themselves needing more otions. Thankfully, your US citizenship keeps doors open for when life circumstances become unexpected and unpredictable in a foreign country. I it is important to remain prepared! Filling out your US tax returns may seem frustrating now, but we guarantee it is worth the extra effort if that means being able to return to the US at any point in your life!
Right to Vote
You retain the right to vote! No matter where you are in the world, if you are still a citizen of the US, you have a say in how the government runs. Even if you feel that your vote doesn’t matter, let us assure you that every vote matters. This is a right for every US citizen and can still be exercised whether your home location is elsewhere.
Pros with Social Security
Are you on the path to receive social security benefits from being a US citizen? Perhaps you already receive benefits. Either way, these benefits will not be denied once you live in another country! You will gain all the social security benefits as if you were still living in the US! However, there are a number of countries in which these benefits will not be sent to. These countries include: North Korea, Cambodia, and Cuba. While this might be alarming for US citizens who desire to reside in these countries, social security benefits can still be received after moving to an approved country! Your US citizenship will pay off regardless of where you decide to live.
Disability Benefits
Before making a big move to another country, you might want to keep Social Security Disability (SSDI) in mind. Citizens of the US who are eligible for SSDI may not receive all or any of the benefits in a different country. First, you will need to discover which countries have a social security agreement with the United States. If you don’t, you might face the risk of losing your benefits within six months or even losing your benefits all together! There may be a situation where you receive your benefits for six months in another country in which you are a legal resident. However, your benefits may be lost after those six months if the country does not have an agreement with the US. Fortunately, you can confirm which countries will allow your SSDI to continue through the Social Security Administration.
Those with SSDI will have to return to the US periodically in order for a review to take place. These reviews only happen every three to seven years. Keep in mind that failure to attend or respond to these reviews may result in a loss of your benefits!
Healthcare Benefits
Healthcare can be a concern for just about anybody. Those who move to a different country spontaneously could approach the struggle of solidifying a healthcare plan. Although traveling back to the US for medical attention may not be someone’s first choice, it could definitely be a standing benefit. It can be difficult to decide on a healthcare plan, especially taking into consideration the quality and cost, but you can still remain on a Medicare plan in the US! Even if you are unable to receive medical care in the country you decide to live in, you are still covered!
There are two options of Medicare to citizens living abroad when they return to the US. The first option, Medicare Part A, is available with no premiums to be paid. If you are 65 years or older along with obtaining eligibility with Social Security, you are automatically approved for this Medicare plan. If you choose to pay monthly, this would grant you Medicare Part B. This plan will cover outpatient services and is recommended to those who believe they might return to the US in need of care.
For your benefit, make sure to confirm all expectations of your healthcare services! Explore the different plans that are offered in the US if you obtain your citizenship.
Clearly, there are many benefits to remaining a US citizen while living abroad. Whether you expect to live overseas for one year or the rest of your life, these benefits should be considered before making steps to revoke your citizenship.
It may be hard to get around to filing those tax returns. We are here to say it is required and worthwhile. Here at Americas Tax Firm we are committed towards helping you in your tax situation. Seek help today from a licensed professional to guide you through your next tax return.