Deductions & credits

Hi ThomasM125!

 

I appreciate your response.

 

By "If your only foreign taxes are social security taxes that don't qualify for a foreign tax credit...." are you saying that those Taxes do NOT qualify for FTC?

I know that based on the Bi-lateral Tax Treaty between my country of birth and the U.S., the only taxing authority on that social security income from that foreign country is that government. 

Where it says "Foreign Earned Wages" doesn't seem right as I did not earn any foreign wages but passive income in the form of social security payments.

 

I also looked at Form 8833 (not supported by TT). "Treaty-Based Return Position Disclosure"

https://www.irs.gov/pub/irs-pdf/f8833.pdf

 

Positions (Page 3) for which reporting is waived include, but are not limited to, the
following. See Regulations section 301.6114-1(c) for other waivers from
reporting.
• That a treaty reduces or modifies the
taxation of income derived by an
individual from dependent personal
services, pensions, annuities, social
security, and other public pensions, as
well as income derived by artists,
athletes, students, trainees, or teachers;
• That a Social Security Totalization
Agreement or Diplomatic or Consular
Agreement reduces or modifies the
income of a taxpayer;
..........

The above would apply in my case and would seem to suggest what you are saying would work.

 

Cheers,

JJ