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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I need the answer to this question
Can anyone help me please?
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."
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.
@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.
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