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Level 2
January 29, 2020
Solved

Foreign medical retirement

  • January 29, 2020
  • 3 replies
  • 17 views

Good day all, I recently got married and my spouse is medically retired from her country, she will be a resident alien soon. Do I have to pay taxes on her disability? Thank you!  

Best answer by klehnhardt

It depends if there is a treaty between the United States and your wife's country and does the treaty say the payments are taxable or not taxable

 

Per The Taxation of Foreign Pension and Annuity Distributions you need to look at the treaty for the country, normally in Article 4 in most treaties, to determine if the payments are taxable.

 

To locate the treaty go to United States Income Tax Treaties - A to Z.

3 replies

Level 10
January 30, 2020

It depends if there is a treaty between the United States and your wife's country and does the treaty say the payments are taxable or not taxable

 

Per The Taxation of Foreign Pension and Annuity Distributions you need to look at the treaty for the country, normally in Article 4 in most treaties, to determine if the payments are taxable.

 

To locate the treaty go to United States Income Tax Treaties - A to Z.

Rich55Author
Level 2
January 30, 2020

KurtL1,

 

 Thank you for your response. Her country is Germany, I should have mentioned that in my question. Thanks again!

 

V/r

Rich55

Level 10
January 30, 2020

You are welcome. I was happy to help you.