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Social security and 401k drawings

hello - if i retire and move out of the USA to a different country and i start collecting social security and 401k, will this affect how taxes will be calculated? How about if i decide to get part time job in that country?

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1 Reply
marctu
Employee Tax Expert

Social security and 401k drawings

Thank you for your question.   So as a US citizen, you must pay U.S. taxes on foreign income and income such as a 401k, and potentially Social Security (See Note).  If you have a part-time job in a foreign country that income could be subject to income tax in that country as well, though the Foreign Earned Income Exclusion may apply (See: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion)  or the Foreign Tax Credit as well.  You may also need to file a tax return in the foreign country depending upon the level of the part-time earnings.  

 

So there are a good deal of facts that would play into this.  

 

Note:  You must pay taxes on up to 85% of your Social Security benefits if you file a: Federal tax return as an “individual” and your “combined income” exceeds $25,000. Joint return, and you and your spouse have “combined income” of more than $32,000

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