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posted Jan 19, 2023 7:02:40 AM

PUB 915 indicates U.S. Social Security benefits received by U.S. citizens residing in the UK are exempt from tax in the U.S. How do I capture this in Turbo Tax 2022?

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1 Best answer
Expert Alumni
Jan 19, 2023 8:35:05 AM

Use a negative adjustment to capture the Social Security tax break for U.S. citizens residing in the U.K.

 

Tax Expert @ThomasM125 says:

 

You would enter the social security income in TurboTax as you normally would, then enter a negative amount as a deduction from Other Income in an amount equal to the taxable social security (see line 6(b) on form 1040.) The two numbers will cancel themselves out, leaving you with no taxable income from your social security. Cite the treaty by completing Form 8833 and attach it to your tax return. This form is not available in TurboTax.

 

First enter your SSA-1099

 

  1. Type 1099-ssa in Search in the upper right
  2. Select Jump to 1099-ssa
  3. Follow the screens and enter your Social Security info

Find your taxable Social Security amount

 

  1. Click on Tax Tools in the left column
  2. Click on Tools
  3. In the center column, tap View Tax Summary
  4. In the left column, tap Preview my 1040
  5. Your taxable Social Security amount will appear as “Taxable Amount” in Form 1040, line 6b
  6. Write down that amount, then tap Back in the left column

Next enter the adjustment to Other Income by using these menu tabs in TurboTax

 

  1. Click on Federal in the left column,
  2. Select Wages & Income
  3. On the Your Income screen, tap Add more income
  4. Find Less common income, select Show more
  5. Start Miscellaneous income, 1099-A, 1099-C
  6. Start Other reportable income
  7. Say YES to Any Other Taxable Income?
  8. Enter a description for the entry (Treaty name) and the amount as a negative number.

See the full discussion: Retired US citizen resident in UK, is Social security taxable in US

1 Replies
Expert Alumni
Jan 19, 2023 8:35:05 AM

Use a negative adjustment to capture the Social Security tax break for U.S. citizens residing in the U.K.

 

Tax Expert @ThomasM125 says:

 

You would enter the social security income in TurboTax as you normally would, then enter a negative amount as a deduction from Other Income in an amount equal to the taxable social security (see line 6(b) on form 1040.) The two numbers will cancel themselves out, leaving you with no taxable income from your social security. Cite the treaty by completing Form 8833 and attach it to your tax return. This form is not available in TurboTax.

 

First enter your SSA-1099

 

  1. Type 1099-ssa in Search in the upper right
  2. Select Jump to 1099-ssa
  3. Follow the screens and enter your Social Security info

Find your taxable Social Security amount

 

  1. Click on Tax Tools in the left column
  2. Click on Tools
  3. In the center column, tap View Tax Summary
  4. In the left column, tap Preview my 1040
  5. Your taxable Social Security amount will appear as “Taxable Amount” in Form 1040, line 6b
  6. Write down that amount, then tap Back in the left column

Next enter the adjustment to Other Income by using these menu tabs in TurboTax

 

  1. Click on Federal in the left column,
  2. Select Wages & Income
  3. On the Your Income screen, tap Add more income
  4. Find Less common income, select Show more
  5. Start Miscellaneous income, 1099-A, 1099-C
  6. Start Other reportable income
  7. Say YES to Any Other Taxable Income?
  8. Enter a description for the entry (Treaty name) and the amount as a negative number.

See the full discussion: Retired US citizen resident in UK, is Social security taxable in US