Question

How do I report foreign social security payments?

Forum|Forum|1 year ago
June 15, 2024
2 replies
0 views

I receive my pension from Mexico through their social security, I forgot to add it to my original tax return now I need to amend

TurboTax Deluxe Online

B

Bsch4477

Report as other income.

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

D

David-TS

Agree with Federal reporting method for foreign Social Security input but when using Turbo Tax for Delaware State how do I get around Turbo Tax calculating this is DE State taxable

DaveF1006

I agree with PK and that you do not need to report Mexican Social Security income on a US tax return because of the treaty provisions. If you exclude it, it won't appear as taxable income in your Delaware return.

If you reported it like Bsch4477 suggests, you would need to make a corresponding entry to offset the amount you reported.

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
You should be in a miscellaneous income summary screen
Select add another income item . Type in Mexican/American treaty benefits and offset the amount originally reported with a negative sign in front of the amount.

This will remove the income both from federal income and Delaware income as well.

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P

pk12_2

@agtzc1961-gmail- , agreeing with my colleague @Bsch4477 on the process to report foreign social security payments to an US person ( citizen/ GreenCard ), please not that in this particular case the US-Mexico Tax treaty , under article 19 of the treaty declares as to which contracting state ONLY has the right to tax this income -- see below :

" ARTICLE 19
Pensions, Annuities, Alimony, and Child Support
1. Subject to the provisions of Article 20 (Government Service):
a) pensions and other similar remuneration derived and beneficially owned by a resident
of a Contracting State in consideration of past employment by that individual or another
individual resident of the same Contracting State shall be taxable only in that State; and
b) social security benefits and other public pensions paid by a Contracting State to a
resident of the other Contracting State or a citizen of the United States shall be taxable only in
the first-mentioned State. "

Thus you DO NOT report the report the SSA payments from Mexico to US -- Mexico has the right to tax these incomes under its laws.

Does this make sense ? Is there more I can do for you ?

pk