Can I get confirmation that my interpretation of Tax treaty between Turkey and United States is correct

[MelsTTC]

I am a dual citizen and State of CA resident

I have been receiving Social Security Survivor Benefit from my foreign dad's retirement benefit from Turkish Government's Social Secutity Administrartion.  My dad had worked within government sponsored health care institutions (Hospitals/clinics).

The taxation treaty between Turkey and IRS seem to say that Social Security Benefits from Turkey is only taxable in Turkey and Turkish Government employee's income and benefits are also taxable only in Turkey.

Is there anyone who can look at the treaty and offer me clarificarions?

[AmyC]

Turkey - Tax Treaty Documents

ARTICLE 18 Pensions and Annuities does state:

Notwithstanding the provisions of paragraph 1, payments made by a Contracting State under the provisions of the social security or similar legislation of that State to a resident of the other Contracting State or to a citizen of the United States shall be taxable only in the first-mentioned State.

Article 19 addresses the government service, income and pension. The income would be taxable to a US citizen but not the pension. I don't believe you are receiving regular income.

This is all related to the federal government. CA does not recognize this tax treaty so it is all taxable to CA.

[MelsTTC]

Thank you for giving me relevant articles from the tax treaty.  

So, based on those articles,  are you saying that monthly Social Security Survivor benefit from Turkey is not taxable by IRS.  but it may be taxable by CA state?

Please confirm

Thank you

[DaveF1006]

Yes, that is correct. California is odd in the respect that some of its taxation does not conform to IRS taxation or Foreign Treaty provisions.

[MelsTTC]

Thanks

So, you are confirming My Social Security Survivor benefit is not taxable by IRS?  Please do say so in words

Given it is taxable by Federal Tax Board of California, do I need to ammend my prev year's taxes?

How come Turbotax did not ask me about this well known foreign SS income reporting difference as I preped my  CA State taxes.  So, my CA taxes would have been correct.? 

Hope Turbotax software people are hearing me regarding this omission on their part.

For the previous years,  can I file ammendments via Turbotax, assuming it could go back to 2019. Speaking of  Turbotax desktop software, could anyone tell me how I will report this CA taxable income in the software.  

Thanks in advance

[AmyC · Accepted solution]

Since Turkey is paying you, taxes are due to Turkey on the income, not the US government. CA was not a part of the treaty so they want your share as you are a resident there to help with that government

There are too many laws with minor variations for the program to ask everything  This is considered a self prepared return and the responsibility lays with the taxpayer..

Amending returns for accuracy is always recommended.

To add the CA income, since your income is similar to pension, I would add it on the screen for pension adjustments. CA doesn't have a place for easy entry of foreign income not taxed by the federal. I think they should be happy you are adding it and will understand that this is the best solution available.

[MelsTTC]

Thank you Amy C.

I could not find the screen that would gimme a way to enter my  "Pension or Annuity Adjustment" in CA return pages.  Please tell me where this adjustment page is hiding?

Thanks,

[AmyC]

I just realized I have a  partial fake 1099-R in my return so CA is showing the adjustment screen. That sounds like a great method for you as well. Add just enough 1099-R information to trigger CA to give you that screen. Once CA has the information, go delete the 1099-R from federal. You are diligent!

[MelsTTC]

Thank you for working with me so timely.  

Thank you for being this timely with your support.

Sorry, I have no idea what 1099-R forms are.  This foreign SS benefit has no forms.  It just trickles into my foreign bank account, creating  this problem.

[AmyC]

I am so sorry! Follow these steps:

1. Go to the federal income section
2. Locate  Retirement plans and Social Security
3. Select IRA, 401k, Pension Plan (1099R)
4. Select I'll type it in myself, continue
5. Select Form 1099-R, continue
6. In box 2a enter any number - we are going to come back and delete this whole form after CA is correct
7. Go to CA return
8. Select Income and Adjustments
9. Continue through to Pension and Annuity Adjustments
10. Add the income and taxable amount, continue
11. Go through CA return and make sure you are happy
12. Go back to federal
13. Locate retirement plan
14. Select IRA.....
15. Delete the 1099-R we started earlier

File your taxes when ready!

[MelsTTC]

Thank you greatly for taking the time and giving me such through steps. 

Since you had earlier stated as long as I knew where I reported this foreign SS benefit it would not matter much where I put it, it went into Schedule CA, 'Part1. income adjustments' , 'Section B. Additional Income", "8.z. Other Income" for this year.  At least it gives me the option to describe what it is.  

I will save your information for future years.  I am appreciative. 

[AmyC]

That was a great solution. You have the description and the amount, CA can't complain because they did not make it easy for you!  Best wishes!

[MelsTTC]

And best wishes to you.

I e-filed my 2022 amended return.  Yet it had fallen into the black hole.  Turbotax says they are accepted, FTB has no record of it.

I hope you have a way of checking when Turbotax will submit them?  

[AmyC]

Your records say submitted and only FTB knows what they have done with them. If they don't show up eventually:

1. Contact FTB since they need to acknowledge the filing
2. If FTB claims it was never filed, you can  contact support. prove who you are and they can give the DCN - a control number that proves when you filed and all the surrounding facts.  
3. Then you call FTB and give them the DCN so they can locate you.
4. Give it some time.

[MelsTTC]

It is me again.   From the link you gave I could not deduce the number to call to enquire DCN for my e-filed  2022 Amended CA return via 2022 Desktop Turbotax .   May I impose on you for specific contact info, again  I was lost in the link you gave me.  

I wish DCN had been available within my Turbotax desktop app.   I wish it had been easier to amend a return.

Thanks in advance for your continued support.  

Meltem