Social Security Tax for US Citizen Retired In Germany

[BHirsch]

I'm a US citizen and have been retired and living in Germany.  I receive Social Security benefits and turbo tax adds a percentage to my total income.  I recently received a check from the IRS because my 2020 1040 overstated my income by the amount of my SS Benefit being taxed.  It appears I don't pay tax on the amount I receive because I reside in Germany.  Wondering how to prevent from overpaying again but Turbo Tax doesn't have a way for me to enter $0 for the Taxable Amount of my SS benefits.  Any thoughts?

[hbl3973]

BHirshc,

As 

https://www.hrblock.com/expat-tax-preparation/resource-center/country/germany/participating-in-the-g...

notes, this is treaty related and not the general case for all ex-pats.  For your case, I would omit the SSA-1099 as it is not taxable income.  If that concerns you because you had medicare payments and/or federal income tax withheld, you could also enter $0 for your social security benefit.  I tested this and it allowed it and it flew right through the Federal Review.

[ThomasM125]

You could enter the social security income, then enter a negative income amount to cancel it out as follows:

1. Choose the Federal option on your left menu bar
2. Choose Wages & Income
3. Find Less Common Income in the list of income sources
4. Use the Show More option to expand the choices and choose Miscellaneous Income, 1099-A, 1099-C
5. Choose the Other Reportable Income option and find Other Taxable Income in that section
6. Enter a description for your treaty and the amount as a negative number

You need to include Form 8833 Treaty-Based Return Position Disclosure with your tax return. TurboTax does not support this form, so you will have to complete it separately and attach it to your tax return which you will have to file by mail.

[fanfare]

" you will have to file by mail"

Find another tax prep software that handles your situation, and supports that Form if you need it.

@BHirsch