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US Social Security Benefits for Non-Resident Aliens: Do They Get Taxed?

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Manage episode 400764183 series 3552789
Content provided by Johnny Punish. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Johnny Punish or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

Quick Hit from Global Thinkers - Recently I had a client for Global Thinkers Tax Services ask me about US Social Security Taxes for their “non-resident alien” wife who will soon be receiving their US Social Security Benefit.
They wanted to know;

  • Will that benefit be taxed?
  • If so, how much?
  • If so, how can they legally minimize or nullify the tax?

The short answer is YES! About 25.5% of the benefit will be withheld as “tax”. And yes, there is a way to minimize or even get that tax down to zero.

To be more specific, if you are a nonresident alien receiving retirement, disability or survivor benefits, SSA will withhold a 30 percent flat tax from 85 percent of those benefits unless you qualify for a tax treaty benefit. This results in a withholding of 25.5 percent of your monthly benefit amount.
Listen to the full podcast for complete details

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6 episodes

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Manage episode 400764183 series 3552789
Content provided by Johnny Punish. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Johnny Punish or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

Quick Hit from Global Thinkers - Recently I had a client for Global Thinkers Tax Services ask me about US Social Security Taxes for their “non-resident alien” wife who will soon be receiving their US Social Security Benefit.
They wanted to know;

  • Will that benefit be taxed?
  • If so, how much?
  • If so, how can they legally minimize or nullify the tax?

The short answer is YES! About 25.5% of the benefit will be withheld as “tax”. And yes, there is a way to minimize or even get that tax down to zero.

To be more specific, if you are a nonresident alien receiving retirement, disability or survivor benefits, SSA will withhold a 30 percent flat tax from 85 percent of those benefits unless you qualify for a tax treaty benefit. This results in a withholding of 25.5 percent of your monthly benefit amount.
Listen to the full podcast for complete details

Resources

  continue reading

6 episodes

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