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Level 3
posted Jan 30, 2020 6:49:52 AM

I live in the Uk and my social security should be tax US exempt due to article 17(3) - how do I make Turbotax reflect this ?

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1 Replies
Expert Alumni
Feb 6, 2020 4:53:31 PM

Report the income in the social security section of your tax return (to satisfy the IRS), then make an adjustment on the line 21 of the 1040.

 

Follow these steps:

  1. Select Federal
  2. Select Income & Expenses
  3. Click to Show All
  4. Scroll down to the last one Less Common Income
  5. Miscellaneous Income, 1099-A, 1099-C
  6. select START
  7. scroll to the bottom to Other Reportable Income.
  8. click START
  9. select YES
  10. Enter description, US exempt due to Article 17(3)
  11. then a negative number. 
  12. click Continue
  13. click Done

Turbo Tax does not directly support a treaty based position. You can do this by filing Form 8833- Treaty Based Return Position Disclosure.  You can use TurboTax to prepare your tax return to print and mail with Form 8833 attached.  You can access the  Form 8833 HERE.