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Retirement tax questions
@shawatam generally agreeing with the response from my colleague @Opus 17 , and assuming that you are a US person ( citizen/GreenCard/Resident for Tax purposes ), having a tax home in the USA.
(a) Article 17 & 18 generally deals with remuneration from the public funds of a contracting state. Thus in case of US -China tax treaty, Social Security or similar payments are taxable only by the "providing " contracting state or its instrumentalities. Thus Social Security Equivalent distribution from China is taxable ONLY by China.
(b) There being no clean way to do it, a suggestion by my colleague DavidF1006 is useful here. In this case you enter the total amount of the distribution as "other " income with memo " Social Security from China " as a positive number and then follow up with another entry for the same amount but as a negative number with the memo " Not Taxable under US-China Tax Treaty article 17" The result would show up as two entries in row z of the Schedule-1.
Ideally this should have been entered ( but Turbo seems to have no way to do it ) as follws;
1. Enter the social security amount on Scehdule-1 -- Part I "Asdditional Income " line 8z -- "Social Security from China "
2. Enter the Social Security amount again on Schedule-1 -- Part II " Adjustments to Income" line 24z -- " Exclusion of Income per US-China Tax treaty article 17 ".
But of course the current way will achieve the results.
Does this help ?