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Level 2
April 29, 2026
Solved

Tax Treaty for US citizens living abroad

  • April 29, 2026
  • 1 reply
  • 844 views

I was a part year resident of Ireland in 2025.  In handling my social security income, Turbotax identified this as a country with a tax treaty with the US.  Based on me saying I lived in Ireland and am also a US citizen, Turbotax did not report any of my social security income as taxable.  The "learn more" text indicating that that income "May" not  be  taxable. 

 

IRS sent me a letter changing my income to include some of it as taxable.  Who is correct?  Do I go along with the IRS figure and try later to claim a refund from Ireland?  

 

TT suggests that you might want to file an amended return following an IRS adjustment notice.  But if I did, I would answer all the questions the same way and there would be no change in the reported numbers.

 

 

    Best answer by Vanessa A

    It depends.  If you lived in Ireland and were there more than 183 days in 2025, you are considered a Ireland Tax Resident.  If you are an Ireland Tax Resident, then you would NOT pay taxes on your SS in the US.  You would pay taxes on it in Ireland.  Ireland would probably NOT give you a refund because the treaty says THEY can tax your Social Security and the IRS would not.  in this situation, you would need to respond to the letter from the IRS by either calling them or sending a letter to the address on the letter with documentation that you were not in the US and that you disagree with their adjustment.  

     

    If you lived there LESS than 183 days in 2025, or are not considered a resident of Ireland for tax purposes than the US gets to tax your SS and Ireland does not.  In that case, you should get a refund from Ireland. 

    1 reply

    Vanessa AAnswer
    Level 15
    April 29, 2026

    It depends.  If you lived in Ireland and were there more than 183 days in 2025, you are considered a Ireland Tax Resident.  If you are an Ireland Tax Resident, then you would NOT pay taxes on your SS in the US.  You would pay taxes on it in Ireland.  Ireland would probably NOT give you a refund because the treaty says THEY can tax your Social Security and the IRS would not.  in this situation, you would need to respond to the letter from the IRS by either calling them or sending a letter to the address on the letter with documentation that you were not in the US and that you disagree with their adjustment.  

     

    If you lived there LESS than 183 days in 2025, or are not considered a resident of Ireland for tax purposes than the US gets to tax your SS and Ireland does not.  In that case, you should get a refund from Ireland. 

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    Level 2
    May 2, 2026

    This was a very clear and helpful answer.