SS deductions for expats

[tmm99]

I live in Canada now and intend to spend most of my time in Canada going forward. When I start taking SS at full retirement age, what will the US government deduct from my SS? I imagine they won't deduct anything for Medicare (which I won't need. I will get travel insurance if I travel to the US..)? I know I'll be taxed at a higher rate from the Canada side (Canada exempts only 15% of SS benefits and the rest will be taxed fully), but I wanted to see if there was something else that would lower my take-home pay.

 

[mexexpat]

At age 65, if already drawing SS, they will automatically deduct for Part B (Part A is free). You need to opt out if you so desire. But once you opt out, if at some point you want back into Medicare B, you will pay a penalty on all future premiums.

 

[Sunset]

Are you going to get CPP from previously working in Canada ? If so WEP will apply.

 

[tmm99]

At age 65, if already drawing SS, they will automatically deduct for Part B (Part A is free). You need to opt out if you so desire. But once you opt out, if at some point you want back into Medicare B, you will pay a penalty on all future premiums.

Thank you for your post. Medicare Part B doesn’t seem to be very high so I might leave that in.

 

[tmm99]

Are you going to get CPP from previously working in Canada ? If so WEP will apply.

No, no CPP.

 

[mexexpat]

If you anticipate using the US for all your healthcare you may want a Medigap plan, too.

Medicare B rates change based on a formula of COLA, etc. Also those with higher gross income are subject to higher premiums.

 

[Sunset]

Thank you for your post. Medicare Part B doesn’t seem to be very high so I might leave that in.

That way you will always have the option to drive back to USA for some treatment.
Doesn't Canada's heathcare vary by Province you live in ?

 

[tmm99]

Doesn't Canada's heathcare vary by Province you live in ?

That's what I've been told, but I have only lived in Ontario and only for a few years at that, so I have no first-hand knowledge.

 

[NYEXPAT]

At age 65, if already drawing SS, they will automatically deduct for Part B (Part A is free). You need to opt out if you so desire. But once you opt out, if at some point you want back into Medicare B, you will pay a penalty on all future premiums.

That may or may not be true for residents of North America. In Peru where I live it is different. If you are collecting SS already when you turn 65, Part A is automatic but you have to opt in for Part "b" . You have 8 mos to opt in without incurring the penalty. I have not confirmed it yet, but I have heard that if you move back to the USA in the future, you have 8 mos from the day you land to start part B without any penalty. In my case I will be moving to the USA this year and will opt in shortly before the 8 mos. expires.