For Social Security recipients, the TaxAct® program will calculate the taxable portion of the Social Security benefits reported on Line 5a of Form 1040 U.S. Individual Income Tax Return based on Worksheet 1 from IRS Publication 915 Social Security and Equivalent Railroad Retirement Benefits, on page 16.
If you reside in a country (listed in Publication 915 on page 5) 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.
U.S. citizens residing abroad. U.S. citizens who are residents of the following countries are exempt from U.S. tax on their benefits.
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