| Author |
Message |
Tony
Guest
|
 Posted:
Mon Oct 31, 2005 4:30 pm Post subject:
Why do I pay Medicare tax? Do I have to? |
|
|
I am US citizen but I intend to live abroad after I retire.
What is, if any, advantage of my paying Medicare Tax in this
case?
In there are no advantages, as I currently suspect, can I
avoid paying Medicare tax?
Why should I pay this tax for the next 15 years even if I
will never be able to get anything from it, if I decide to
live abroad once I retire? Just because legislation mandates
it and that's it, basically, thanks for asking?
Or does this tax make sense even in my case?
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Paul A. Thomas
Guest
|
| Posted:
Wed Nov 02, 2005 5:00 pm Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
"Tony" <tonkoj@gmail.com> wrote
| Quote: | I am US citizen but I intend to live abroad after I retire.
What is, if any, advantage of my paying Medicare Tax in this
case?
|
Plans change. No, really, I mean it.
| Quote: | In there are no advantages, as I currently suspect, can I
avoid paying Medicare tax?
|
Nope. At least not while you generate "earned" income from
wages of self-employment.
| Quote: | Why should I pay this tax for the next 15 years even if I
will never be able to get anything from it, if I decide to
live abroad once I retire? Just because legislation mandates
it and that's it, basically, thanks for asking?
|
Two things: 1) it's the law, and 2) plans change.
--
Paul A. Thomas, CPA
Athens, Georgia
paulthomascpapc@bellsouth.net
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
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<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
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Phil Marti
Guest
|
| Posted:
Wed Nov 02, 2005 5:00 pm Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
"Tony" <tonkoj@gmail.com> wrote:
| Quote: | I am US citizen but I intend to live abroad after I retire.
What is, if any, advantage of my paying Medicare Tax in this
case?
|
None I can think of off the top of my head.
| Quote: | In there are no advantages, as I currently suspect, can I
avoid paying Medicare tax?
|
Not if you have income subject to Medicare tax.
| Quote: | Why should I pay this tax for the next 15 years even if I
will never be able to get anything from it, if I decide to
live abroad once I retire? Just because legislation mandates
it and that's it, basically, thanks for asking?
|
See, you didn't need us at all. It's a tax, not insurance
premiums.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >>
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Seth Breidbart
Guest
|
| Posted:
Thu Nov 03, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
Tony <tonkoj@gmail.com> wrote:
| Quote: | I am US citizen but I intend to live abroad after I retire.
What is, if any, advantage of my paying Medicare Tax in this
case?
|
You avoid going to jail for not paying taxes.
| Quote: | In there are no advantages, as I currently suspect, can I
avoid paying Medicare tax?
|
Leave the country now.
| Quote: | Why should I pay this tax for the next 15 years even if I
will never be able to get anything from it, if I decide to
live abroad once I retire?
|
It's a tax.
| Quote: | Just because legislation mandates
it and that's it, basically, thanks for asking?
|
That's right.
What are the advantages of paying Income Tax?
| Quote: | Or does this tax make sense even in my case?
|
It doesn't have to make sense, it's the law.
Seth
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Tony
Guest
|
| Posted:
Thu Nov 03, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
Paul A. Thomas wrote:
| Quote: | Two things: 1) it's the law, and 2) plans change.
|
But consider Social Security Tax. It is called tax as is
Medicare Tax in my paystub.
With enough credits I am eligible to get SS checks once I
retire, no matter where I decide to live.
For ex. I met several American expats while on plane to
Costa Rica and they told me they obtained residence by
showing their monthly SS check. They continue receiving
checks there.
In contrast, Medicare Tax can apparently never be of any use
in the similar situation. It strikes me as totally
unreasonable because by the time I retire, I'll eventually
have about $30,000 in Medicare taxes literally thrown away.
Am I supposed to board a plane and go buy a medicine in the
U.S., every once in a while?
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Joe Btfsplk
Guest
|
| Posted:
Thu Nov 03, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
"Tony" <tonkoj@gmail.com> wrote:
| Quote: | I am US citizen but I intend to live abroad after I retire.
What is, if any, advantage of my paying Medicare Tax in this
case?
In there are no advantages, as I currently suspect, can I
avoid paying Medicare tax?
Why should I pay this tax for the next 15 years even if I
will never be able to get anything from it, if I decide to
live abroad once I retire? Just because legislation mandates
it and that's it, basically, thanks for asking?
Or does this tax make sense even in my case?
|
This tax is a tax on earned income, not a savings plan or
optional insurance plan. Workers pay the tax for Mcare for
retirees whether the worker ever retires or not. If you die
before retiring or move abroad after you retire, it has
nothing to do with paying the tax.
Same for Soc Sec. You pay whether you ever collect any
benefits or not.
Work all day, live on hay and you may get pie in the sky
when you die.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Rich Carreiro
Guest
|
| Posted:
Thu Nov 03, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
"Tony" <tonkoj@gmail.com> writes:
| Quote: | Just because legislation mandates
it and that's it, basically, thanks for asking?
|
Yep.
--
Rich Carreiro rlcarr@animato.arlington.ma.us
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Harlan Lunsford
Guest
|
| Posted:
Thu Nov 03, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
Tony wrote:
| Quote: | I am US citizen but I intend to live abroad after I retire.
What is, if any, advantage of my paying Medicare Tax in this
case?
In there are no advantages, as I currently suspect, can I
avoid paying Medicare tax?
Why should I pay this tax for the next 15 years even if I
will never be able to get anything from it, if I decide to
live abroad once I retire? Just because legislation mandates
it and that's it, basically, thanks for asking?
Or does this tax make sense even in my case?
|
To cut to the chase here, if you're working, you're liable
for social security AND medicare tax; no ifs,ands,orbuts
about it.
ChEAr$,
Harlan Lunsford, EA n LA
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Tony
Guest
|
| Posted:
Thu Nov 03, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
I went on Medicare Web site but there are no asnwers in FAQ
that seem relevant to my situation described above.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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Gil Faver
Guest
|
| Posted:
Thu Nov 03, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
"Tony" <tonkoj@gmail.com> wrote:
| Quote: | I am US citizen but I intend to live abroad after I
retire.
What is, if any, advantage of my paying Medicare Tax
in this case?
In there are no advantages, as I currently suspect, can I
avoid paying Medicare tax?
Why should I pay this tax for the next 15 years even if I
will never be able to get anything from it, if I decide to
live abroad once I retire? Just because legislation mandates
it and that's it, basically, thanks for asking?
Or does this tax make sense even in my case?
|
if I could stop paying the taxes for which I will receive
nothing in return, I would be a happy man.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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| Back to top |
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|
Tony
Guest
|
| Posted:
Fri Nov 04, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
Seth Breidbart wrote:
| Quote: | Tony <tonkoj@gmail.com> wrote:
I am US citizen but I intend to live abroad after I retire.
What is, if any, advantage of my paying Medicare Tax in this
case?
You avoid going to jail for not paying taxes.
In there are no advantages, as I currently suspect, can I
avoid paying Medicare tax?
Leave the country now.
Why should I pay this tax for the next 15 years even if I
will never be able to get anything from it, if I decide to
live abroad once I retire?
It's a tax.
Just because legislation mandates
it and that's it, basically, thanks for asking?
That's right.
What are the advantages of paying Income Tax?
Or does this tax make sense even in my case?
It doesn't have to make sense, it's the law.
|
It is not my intention to discuss the politics and personal
opinions but to find the information.
For ex. we may or may not agree on the amount of Income Tax
or on how those funds get spent by the government, but this
law in not totally senseless.
Most people would agree that funding of certain social
programmes (and here I mean many things, from roads to
scientific research, etc.) is necessary for any functional
society.
Thus I would expect that medicare tax is not totally
senseless either.
However I don't expect a good answer from anybody who would
be shocked finding out that millions of American expats
receive Social Security checks all over the world.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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rick++
Guest
|
| Posted:
Fri Nov 04, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
Probably the majority of retired people dont have "earned
income" from wages any more, so they dont pay this tax.
Their income is government pensions, private pensions, and
investment returns.
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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|
Tony
Guest
|
| Posted:
Fri Nov 04, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
Joe Btfsplk wrote:
| Quote: | Same for Soc Sec. You pay whether you ever collect any
benefits or not.
|
That is not the issue.
The point I am trying to make is that *I can* collect Soc.
Sec. almost anywhere in the world (well, probably not in
Iran and a few other countries) while I don't know how can I
collect anything from Medicare if I am not in the U.S.
Soc Sec. *will mail checks abroad*! Is there anything
similar available for Medicare?
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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|
A.G. Kalman
Guest
|
| Posted:
Fri Nov 04, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
Tony wrote:
| Quote: | I am US citizen but I intend to live abroad after I retire.
What is, if any, advantage of my paying Medicare Tax in this
case?
In there are no advantages, as I currently suspect, can I
avoid paying Medicare tax?
Why should I pay this tax for the next 15 years even if I
will never be able to get anything from it, if I decide to
live abroad once I retire? Just because legislation mandates
it and that's it, basically, thanks for asking?
Or does this tax make sense even in my case?
|
If you work for a foreign employer who is not a foreign
affiliate of an American company, you would not be subject
to medicare taxes on your wages.
--
Alan
http://taxtopics.net
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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|
Rich Carreiro
Guest
|
| Posted:
Fri Nov 04, 2005 9:00 am Post subject:
Re: Why do I pay Medicare tax? Do I have to? |
|
|
"Tony" <tonkoj@gmail.com> writes:
| Quote: | In contrast, Medicare Tax can apparently never be of any use
in the similar situation. It strikes me as totally
unreasonable because by the time I retire,
|
As the previous poster said: (1) It. Doesn't. Matter. What.
You. Think. (2) Plans change.
| Quote: | I'll eventually have about $30,000 in Medicare taxes
literally thrown away.
|
You're making the mistake of thinking of SS and Medicare
*taxes* as some sort of payment for something to be
received. They aren't. They are taxes on current income.
They aren't meaningfully different from the federal income
tax (especially given that the govt doesn't segregate SS and
Medicare taxes received when it reports the budget).
--
Rich Carreiro rlcarr@animato.arlington.ma.us
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2005) - All rights reserved. >>
<< ======================================================= >> |
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