HI,
Does Alimony counts as tax credit?
There is a need for 40 tax credit, and every 3 months one needs to earn a minimum of $1320.00 in order to earn 1 tax credit.
My question is, if I move abroad and I am receiving alimony, will it counts as income and I will NOT lose tax credit?
Thank you,
Dana
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Alimony does not produce credits to qualify you for social security. Where you live makes no difference.
It does sound like you are referring to the 20/40 requirement for Social Security. Tax credits on tax returns have nothing to do with the 20 quarters out of the last 40 quarters (5 years out of the last 10 years that you have to pay into Social Security to be eligible for Social Security disability benefits - not sure if this also applies to being eligible to receive regular Social Security benefits and Medicare?? - I only know about the requirements for the disability part of Social Security.
I'm not sure that Alimony income counts toward the quarters requirements for Social Security. I'm pretty sure that you have to be working and have the appropriate Social Security taxes deducted from your wages, in order for each quarter of a year (3 months) to count toward the 20/40 requirement for Social Security.
Are Social Security taxes and Medicare deductions being taken out of your Alimony?
If not, then I doubt that your alimony is helping you as a "credit" toward Social Security.
And, I'm sure that you don't enter Alimony payments as tax credits on your tax returns - but then. what a novel idea!
Anyway, moving out of the country doesn't affect these issues. Good luck.
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