For Social Security recipients, the TaxACT program will calculate the taxable portion of the Social Security benefits reported on Line 20a of IRS Form 1040 U.S. Individual Income Tax Return based on Worksheet 1 from IRS Publication 915 Social Security and Equivalent Railroad Retirement Benefits, page 7.
 
If you reside in a country (listed in Publication 915) that has an agreement with the U.S. regarding the non-taxability of Social Security retirement benefits, we would suggest they be treated as other non-taxable income and not reported on the return.

Under applicable tax treaties, residents of these countries are exempt from U.S. tax on their benefits:

• Canada
• Egypt
• Germany
• Ireland
• Israel
• Italy
• Japan
• Romania
• United Kingdom

Please note, this is ONLY applicable if you are a nonresident alien.