Itís Your Money > Taxes

Estate Tax

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suzukig1:
For the U.S. only: There are several "unusual" issues with estate taxes and retirement accounts.

1. The surviving spouse can keep the retirement account (IRA, 401k) as a retirement account and transfer it to their name.  But there is a time limit to do this; I believe 60 days.  If the retirement account doesn't get transferred as a retirement account income taxes (not estate taxes) will be owed on non-Roth retirement accounts just as if the whole retirement account was distributed.

2. If the retirement accounts are transferred as retirement accounts the surviving spouse can take distributions at any age.  The surviving spouse does not need to over 59 1/2.  There may be some rules on the distribution amounts but I'm not sure.  Income taxes are owed on the distributions and a U.S. income tax return will have to be filed.

3. If the "surviving" spouse is not a U.S. citizen and not a U.S. resident and dies with assets in the U.S. huge estate taxes may be owed.  There is only a $60,000 deductible for non U.S. citizen, non U.S. residents on estate taxes.  The U.S. estate tax rate is high; something like 40% - 50%.  (U.S. citizens and U.S. residents get a $5M+ deductible on estate taxes.)

danilo666:
Thank you suzokig, that's very helpful especially with the new lower tax and higher allowances. I'm named on the deed as having right to survivorship.

iamjames:
A peculiarity of Philippine tax is that there is no such thing as a tax refund. If you pay too much then tough luck. It is one reason for the huge level of tax evasion here.

bigrod:

--- Quote from: iamjames on February 13, 2018, 01:36:05 PM ---A peculiarity of Philippine tax is that there is no such thing as a tax refund. If you pay too much then tough luck. It is one reason for the huge level of tax evasion here.

--- End quote ---


The following seems so refute your claim of no tax refund...actually the employer refunds the over payment in your Jan pay check.

http://primer.com.ph/tips-guides/2016/12/29/expats-guide-to-tax-refund-in-the-philippines/

Chuck

BudM:

--- Quote from: iamjames on February 13, 2018, 01:36:05 PM ---A peculiarity of Philippine tax is that there is no such thing as a tax refund. If you pay too much then tough luck. It is one reason for the huge level of tax evasion here.

--- End quote ---

That is wrong James.  My wife has a business and she has the quarterly reporting and then at the end of the year, her exemption has caused her to be overpaid.  Rather than apply for a refund though, she just keeps it there as overpaid to subtract on the next go round in the first quarter of the following year or more if necessary.

Whoever told you that is full, I mean is misinformed and needs to brush up on their Philippine tax laws.  And don't let them kid you, the Philippines is in hot pursuit of tax evaders along with DOLE on the ones trying to avoid paying benefits to their employees.  In recent years, it has become a whole new country with all that stuff.

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