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