Who files

[illyriad]

As an American citizen living in the Philippines making $4,337 in retirement benefit and Social Security of $19,338 (which SSI says is non-taxable) do I have to send in a return annually?Thanks.

[SusanY1]

The amounts that you share here are under the threshold that requires you to file a tax return for 2023.  Odds are, if your income doesn't significantly change you'll continue to not have a filing requirement but since the rules change periodically, it'd be best to double-check annually. 

If you have any income in the Philippines, it counts as well, as US citizens are required to report all of their worldwide income. 

[illyriad]

Thanks, Susan, that is what I thought too and when I did the Social Security work sheet it also agreed that I need not file. Yet, I hear the IRS saying that any American living abroad who has income from the US must file. So, respectively, are you absolutely sure that this is the case? I have not been filing these past years because I was below the threshold, so I would be in deep trouble if the IRS comes along and says FILE. What started my whole inquiry and concern is that my foreign bank had me sign a letter agreeing not to hold them liable for any loses due to the Fatcha form they must submit to the IRS reporting my bank income and funds. I never worried about the Fatcha since I have never had $10,000 or more in my account ever. What do you think, and thanks again Susan for your reply?

[AmyC]

Susan is our best expert in this area and she made a point that it is always a good idea to check each year. You can do that at the IRS website with a quick quiz. You can settle your mind knowing exactly what the IRS thinks of your situation. See Do I Need to File a Tax Return? The IRS updates that link each year so you can refer back to it each year.

You are also right about the FATCA. If it was required, you could file it with your return, if it was required. Here is a comparison of the FATCA (Form 8938) and FBAR requirements.

[illyriad]

I appreciate both of you and your advises. But, I didn't mean any disrespect, I just think it is good to get a second opinion on brain surgery and taxes. I will file though because my bank is sending in reports, so I feel better to do it too. Thanks again for all the great help on this site. You are amazing.