Information about arranging your financial life to live abroad.

Will Peace Corps service affect my Social Security retirement benefits?

Only the Social Security Administration (SSA) can determine whether, or how, your benefits will be affected while you serve as a Volunteer. The Peace Corps readjustment allowance (accrued at the rate of $225 per month and paid at the end of service for all months, including training) and a small percentage of the monthly living allowance you are provided by the Peace
Corps constitute earnings for Social Security purposes. Social Security and Medicare tax payments are deducted from your monthly readjustment allowance.
For more information, visit SSA or
call 800.772.1213. For questions about retirement benefits, contact the human resources department at your workplace.

Will Peace Corps service affect my Social Security disability payments?

The Social Security Administration retains the right to determine on a case-by-case basis whether the physical demands on a Peace Corps Volunteer warrant continuation of disability payments. Every case is reviewed periodically by SSA, generally at least once every three years, to make sure all requirements for the entitlement are met. Contact SSA at 800.772.1213 for
more information.

Are Volunteers exempt from capital gains on
the sale of their principal residence in the U.S.?

Check with your tax advisor for the most current information.

How can I best maintain my home and financial affairs while overseas?

You may want to discuss with an attorney the possibility of giving a relative or friend power of attorney to handle your financial matters while you are serving in the Peace Corps. If you decide to rent your home while you are overseas, a property manager may be useful to arrange leases, handle rental income, pay taxes and insurance, and supervise needed repairs and maintenance on your home. You might also consider having an accountant or tax service prepare your income taxes while you are overseas. Note that your monthly living allowance and
readjustment allowance are considered taxable income, so W-2 forms will be sent to your Peace Corps worksite. You can either file from overseas or send them home, along with other income records, to be filed by someone else. As a Volunteer, you may be granted an extension on the April 15 filing date. Consult your
tax advisor for additional information.

Can I have debt of any sort (e.g., tuition for my kids) and still be in the Peace Corps?

Managing money shows fiscal responsibility, so debt alone is not a disqualification. You can serve in the Peace Corps with outstanding financial obligations if you can show that the debts can be managed and/or paid in a timely way during service.

If you plan to have another person assume responsibility
for making payments on a debt, an original copy of a notarized statement from that person acknowledging his or her responsibility is required.

An applicant may include an allotment or multiple allotments up to $168.75 per month from his or her Volunteer readjustment allowance when making debt payment plans. This allotment is not available until the trainee is sworn in as a Volunteer, so the applicant must make other arrangements for payments during training. These allotments must be paid directly to the company that holds the debt.