Social Security Benefits Received in Foreign Exempt Country

For Social Security recipients, the TaxAct® program will calculate the taxable portion of the Social Security benefits reported on Line 21a 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

Note. This is ONLY applicable if you are a nonresident alien.