pk
Level 15
Level 15

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 ?