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Foreign social security income

I am receiving social security payments  from Turkey because I am retired there. I am a US citizen and I live in the US.

 

I found out that there is a tax treaty between US and Turkey. But it seems like the tax treaty is all about business income and capital gains. I did not see anywhere that social security payments is mentioned.

 

How do I treat this income in my tax return?

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4 Replies

Foreign social security income

I need the answer to this question

 

Can anyone help me please?

Hal_Al
Level 15

Foreign social security income

Chances of finding someone familiar with that obscure subject are slim. 

The TurboTax search feature is weak. Google is better. 

Here are a few finds:

https://www.irs.gov/businesses/the-taxation-of-foreign-pension-and-annuity-distributions which says:

"This is generally true unless a treaty provision specifically amends that treatment. For example, some treaties provide that the country of residence may not tax amounts that would not have been taxable by the other country if you were a resident of that country."

https://ttlc.intuit.com/community/retirement/discussion/hi-i-need-to-report-the-foreign-income-from-...

https://ttlc.intuit.com/community/retirement/discussion/hi-i-need-to-report-the-foreign-income-from-...

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/where-do-i-enter-foreign-social-...

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/report-foreign-pension-sweden-so...

Foreign social security income

Foreign Social Security Retirement Income also called Foreign Social Security Pension must be reported in Form 1040 line 8 referred to “Other income from Schedule 1 line 8 z”. Unless a bilateral treaty exists to avoid double taxation, Foreign Social Security Pensions are fully taxable because of the very well known “saving clause “. 
So, don’t make the mistake to report it neither in line 5b) nor in line 6 b) . 
I do hope this will help you . Any comment from anyone will be appreciated and will enrich our network. 

DaveF1006
Expert Alumni

Foreign social security income

@misterno123  Kosetife is correct in what he/she says. I could not find any information that was contrary to the "savings clause". Here is how to report.

  • Click Federal > Wages & Income>all income>
  • Go to the last selection, Miscellaneous Income and click Start
  • Go to the last option, Other reportable income and click Start
  • When it asks, "Any other reportable income?" say yes and then type in a description and the amount to report it on your tax return. For the description, type in Foreign Social Security from Turkey and then the amount.

 

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