Treatment of forein Social Security
How is Greek Social Security type pension taxed for a US citizen and resident who earned this prior to becoming a US citizen?
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aFuzXj-0Cr3QjyacfA8pyY
01/06/10 8:45pm PST
Viewed by asker 02/06/12 12:23pm PST
Viewed by asker 02/06/12 12:23pm PST
11 Replies
Charlotte256
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01/07/10 1:13am PST
It is a taxable pension.
From the IRS: Pensions paid by Spain, its political subdivisions, or local authorities for services performed for Spain are exempt from U.S. tax unless the individual is both a citizen and resident of the United States.
Always check for the treaties when dealing with income from another country. Pensions are in Pub 901.
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PhoebeRoberts
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01/07/10 9:41am PST
I agree with Charlotte's conclusion, although the rules for Spain aren't really relevant.
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Charlotte256
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01/07/10 10:55am PST
Phoebe, I like to verify that what I know is true.
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ArchieLeach
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01/07/10 1:56pm PST
....regardless of its relevance. ;-)
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01/07/10 2:26pm PST
Charlotte is always relevant. If Shorebird takes her advice he'll understand the mention of Spain. It is a good idea to also download the latest treaty document specific to the countries of any of your clients if they are resident or naturalized citizens.
NanseaLevy
- If we knew what it was we're doing, it would not be called Research. - Albert Einstein
- If we knew what it was we're doing, it would not be called Research. - Albert Einstein
03/01/11 7:12am PST
I don't know if she heard you since it was a post from over a year ago.
03/01/11 7:30am PST
Latest post
Today is not starting out quite the way I would have liked.
02/28/11 10:35am PST
Thank you all for your replies. After looking at the treaty and not being able to decide, I finally went with the IRS employee's advice. He told me 85% of this is taxable. Correct? Who knows? I didn't find it in writing anywhere.
02/28/11 10:40am PST
The solution
Last one of these I had was Germany, and, yes, it was 85% taxable (as of about 3 years ago).
02/28/11 5:08pm PST
Thank you. It makes me feel better as, having not found anything in writing in this respect (did you?) I have been worried about it. If the whole amount should have been taxable!
