The following message was posted on a forum for Swiss citizens. What do
the experts on this forum suggest?
"Hello, I am seeking expert advice for reporting Swiss social security >benefits on USA tax forms.
Local tax experts were not expert enough to know about foreign pension
and social security benefits.
The following message was posted on a forum for Swiss citizens. What do
the experts on this forum suggest?
"Hello, I am seeking expert advice for reporting Swiss social security >benefits on USA tax forms.
Local tax experts were not expert enough to know about foreign pension
and social security benefits.
I have now spent a lot of time reading but it is still confusing. I do
not wish to be taxed if there is a treaty that protects but I believe
the amount has to be nevertheless reported with mention of the treaty.
(Not something feasible using Turboxtax online I guess.)"
According to tb <nospam@example.invalid>:
The following message was posted on a forum for Swiss citizens.
What do the experts on this forum suggest?
"Hello, I am seeking expert advice for reporting Swiss social
security benefits on USA tax forms.
Local tax experts were not expert enough to know about foreign
pension and social security benefits.
Here's the tax treaty:
You should read the treaty and the technical explanation but thse
bits of Article 19 seem fairly clear:
2. a) Any pension paid by, or out of funds created by, a Contracting
State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or
subdivision or authority shall be taxable only in that State. b)
However, such pension shall be taxable only in the other Contracting
State if the individual is a resident of, and a national of, that
State.
4. Notwithstanding paragraph 2, social security payments and other
public pensions paid by a Contracting State to an individual who is
a resident of the other Contracting State may be taxed in that other
State. However, such payments may also be taxed in the first
Contracting State according to the laws of that State, but the tax
so charged shall not exceed 15 percent of the gross amount of the
payment.
So it depends where you live.
"Hello, I am seeking expert advice for reporting Swiss social
security benefits on USA tax forms.
Here's the tax treaty: >https://www.irs.gov/businesses/international-businesses/switzerland-tax-treaty-documents
Thanks. On which line of the 1040 should such social security payments
be inserted?
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