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Is my pension (retirement/social security money) I received from foreign country (FRANCE) taxable (I mean is considered as income and have to declare for California

 
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Accepted Solutions
Fern
New Member

Is my pension (retirement/social security money) I received from foreign country (FRANCE) taxable (I mean is considered as income and have to declare for California

Foreign social security is taxable by California as annuity income. A tax treaty between the United States and another country which excludes the foreign social security from federal income or which treats theforeign social security as if it were United States social securitydoes not apply for California purposes.

https://www.ftb.ca.gov/forms/2011/11_1005.pdf

For federal tax purposes, social security payments received from France are taxable only in France.

"pensions and other payments made under the social security legislation of a
Contracting State to a resident of the other Contracting State shall be taxable only in the
first-mentioned State."

Based on this, a social security payment made by France to a resident of the US will be taxable in France Only.

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5 Replies
Fern
New Member

Is my pension (retirement/social security money) I received from foreign country (FRANCE) taxable (I mean is considered as income and have to declare for California

Foreign social security is taxable by California as annuity income. A tax treaty between the United States and another country which excludes the foreign social security from federal income or which treats theforeign social security as if it were United States social securitydoes not apply for California purposes.

https://www.ftb.ca.gov/forms/2011/11_1005.pdf

For federal tax purposes, social security payments received from France are taxable only in France.

"pensions and other payments made under the social security legislation of a
Contracting State to a resident of the other Contracting State shall be taxable only in the
first-mentioned State."

Based on this, a social security payment made by France to a resident of the US will be taxable in France Only.
TWSVV
Returning Member

Is my pension (retirement/social security money) I received from foreign country (FRANCE) taxable (I mean is considered as income and have to declare for California

This refers to Social Security received from a foreign country, that by a bilateral taxagreement are to be taxed in that country and not by de US IRS 

However they are taxable by the State.

Hence:

 I  listed them on US 1040 tax from but then also as  non taxable ( but still used in the total income on 1040 line 9)

Then in de MD state taxform  they supposedly are to be listed as foreign income not taxed by the IRS (but by the State). When doing so, however they are on the state tax from added (again) to the  adjusted gross income. 

So either I don’t listed them on the 1040, or I don’t list them on the State from.

DaveF1006
Expert Alumni

Is my pension (retirement/social security money) I received from foreign country (FRANCE) taxable (I mean is considered as income and have to declare for California

To clarify, what country?

 

@TWSVV 

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TWSVV
Returning Member

Is my pension (retirement/social security money) I received from foreign country (FRANCE) taxable (I mean is considered as income and have to declare for California

Country (Netherlands) irrelevant in this query. The issue is TurboTax seems to require to report the foreign soc security twice. First as non taxable in 1040, but part of the gross), and then again in state form, The total gross income on the state form counts it then twice I.e, state gross income appears higher than federal g.i.

AmyC
Expert Alumni

Is my pension (retirement/social security money) I received from foreign country (FRANCE) taxable (I mean is considered as income and have to declare for California

If you are unable to make the adjustment on the CA return, you could file the federal. Save a copy of your return. Remove the excess income and then file the state return.

@TWSVV 

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