I was recently asked by someone about taxes on social security while living in the DR. This is what I found on the website. Perhaps someone currently collecting while living in the DR could comment on the process and amount of taxes.
If you are a U.S. citizen or U.S. resident, up to 85 percent of the Social Security benefits you receive may be subject to the federal income tax.
If you file a federal income tax return as an ?individual? and your combined income is $25,000 to $34,000, you may have to pay taxes on up to 50 percent of your Social Security benefits. ?Combined income? means your adjusted gross income plus nontaxable interest plus one-half of your Social Security benefits. If your combined income is over $34,000, you may have to pay taxes on up to 85 percent of your Social Security benefits.
If you file a joint tax return, you may have to pay taxes on up to 50 percent of your Social Security benefits if you and your spouse have a combined income of $32,000 to $44,000. If your combined income is over $44,000, you may have to pay taxes on up to 85 percent of your Social Security benefits.
If you are a member of a couple and file a separate return, you probably will pay taxes on your benefits.
If you are not a U.S. citizen or a U.S. resident, federal income taxes will be withheld from your benefits. The tax is 30 percent of 85 percent of your benefit amount.
It will be withheld from the benefits of all nonresident aliens, except those who reside in countries which have tax treaties with the U.S. that do not permit taxing of U.S. Social Security benefits (or provide for a lower tax rate). The U.S. has such treaties with Canada, Egypt, Germany, Ireland, Israel, Italy, Japan, Romania, Switzerland and the United Kingdom (defined as England, Scotland, Wales and Northern Ireland). Under the tax treaty with Switzerland, benefits paid to residents of Switzerland who are not U.S. citizens, are taxed at a rate of 15 percent. In addition, the Social Security benefits paid to individuals who are citizens and residents of India are exempt from this tax to the extent that their benefits are based on federal, state or local government employment. (This list of countries may change from time to time.)
After the end of the year, you will receive a statement showing the amount of benefits you were paid during the year.
Many foreign governments do tax U.S. Social Security benefits. U.S. residents planning to live in another country should contact that country?s embassy in Washington, D.C., for information.
Social Security benefits are calculated in U.S. dollars. The benefits are not increased or decreased because of changes in international exchange rates.
If you are a U.S. citizen or U.S. resident, up to 85 percent of the Social Security benefits you receive may be subject to the federal income tax.
If you file a federal income tax return as an ?individual? and your combined income is $25,000 to $34,000, you may have to pay taxes on up to 50 percent of your Social Security benefits. ?Combined income? means your adjusted gross income plus nontaxable interest plus one-half of your Social Security benefits. If your combined income is over $34,000, you may have to pay taxes on up to 85 percent of your Social Security benefits.
If you file a joint tax return, you may have to pay taxes on up to 50 percent of your Social Security benefits if you and your spouse have a combined income of $32,000 to $44,000. If your combined income is over $44,000, you may have to pay taxes on up to 85 percent of your Social Security benefits.
If you are a member of a couple and file a separate return, you probably will pay taxes on your benefits.
If you are not a U.S. citizen or a U.S. resident, federal income taxes will be withheld from your benefits. The tax is 30 percent of 85 percent of your benefit amount.
It will be withheld from the benefits of all nonresident aliens, except those who reside in countries which have tax treaties with the U.S. that do not permit taxing of U.S. Social Security benefits (or provide for a lower tax rate). The U.S. has such treaties with Canada, Egypt, Germany, Ireland, Israel, Italy, Japan, Romania, Switzerland and the United Kingdom (defined as England, Scotland, Wales and Northern Ireland). Under the tax treaty with Switzerland, benefits paid to residents of Switzerland who are not U.S. citizens, are taxed at a rate of 15 percent. In addition, the Social Security benefits paid to individuals who are citizens and residents of India are exempt from this tax to the extent that their benefits are based on federal, state or local government employment. (This list of countries may change from time to time.)
After the end of the year, you will receive a statement showing the amount of benefits you were paid during the year.
Many foreign governments do tax U.S. Social Security benefits. U.S. residents planning to live in another country should contact that country?s embassy in Washington, D.C., for information.
Social Security benefits are calculated in U.S. dollars. The benefits are not increased or decreased because of changes in international exchange rates.