sgum9999

Since my LPR status will obviously expire once I am back in the UK, I am curious to hear if anybody has experienced any repercussions after loss of that status. For instance, if you file for SS benefits once you are no longer a US resident and have abandoned LPR status will that create problems which could be avoided if the LPR status were still in place? Any other unforeseen issues once you are considered a 'non-resident' alien by the US?

Would love to hear from others who have gone through the process.

durham_lad

On the SS question. My wife applied through the London US Embassy for her SS a couple of years ago and it went through extremely well, but just before the application interview on the phone was completed the agent realized that she was a USC but said that it made absolutely no difference however he requested that they see her US passport. Since they also didn’t know I was a USC I sent my passport in as well to be recorded in their system for when I applied. (We have been USCs since 1998 but hadn’t realized that the different agencies didn’t share information so although the IRS etc have us down as USCs the SS administration did not)

Not being a USC or LPR should make no difference to receiving SS and I think my wife’s experience demonstrates that.

sgum9999

Thanks for your reply. I want to make sure to protect myself any way I can if the loss of the LPR status is going to present problems with regard to my SS benefits. That whole 'flat tax' issue and the possible 30% benefit reduction really had me spooked, although after reviewing the info you kindly provided in my last post it appears that's not an issue. I plan on getting a re-entry visa to buy some time before I completely lose my LPR status. I think I'll feel more comfortable if I have more time to make the change in citizenship status.

durham_lad

Definitely no reduction in SS if you move back, and certainly no ‘flat tax’. There is a 30% withholding tax on IRA distributions if you reside in the UK, and that applies to US citizens as well. That has happened to me but that withholding will be applied to your US tax return and refunded if you don’t owe tax on the distribution. (In my case this was a Roth IRA distribution and no actual tax is payable on Roth distributions but I couldn’t get out of paying 30% withholding and then claiming it back.)

sgum9999

Thank you. It seems the hardest part is going to be working out all of the financial stuff. I think it may be worth hiring someone for tax purposes, etc. to make the transition a bit easier. If you can recommend anyone in the NE with experience in these matters it would be most appreciated. I'll be living in the Tynemouth/Shields/WhitleyBay area, although I would assume these matters can be handled entirely online.

Thanks, again. You've been very kind.

dunroving

Not exactly what you are asking, but I never had LPR status (I was on a series of different visas for 16 years). Not being an LPR/never being an LPR hasn't affected my SS benefits. One thing that does affect SS benefits (just my recollection; you might want to look into it) was related to me living outside the US. If I ever work more than a certain amount, my SS benefits would be reduced for the period I am working. Doesn't apply to me (I'm ostensibly retired), but if you intend to work after claiming SS benefits, it's worth looking into.

sgum9999

That's good to hear. If you were on visas and never an LPR and it didn't affect your SS benefits then it doesn't sound like loss of LPR status will be an issue. I want to be absolutely certain about the issue before I move. I've been worried that SS may treat the application differently depending upon whether I'm still considered an LPR, or if I'm considered a non-resident alien. I think I'm going to get a re-entry visa in order to hold the LPR status open as an insurance policy. Or maybe get a lawyer.