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Old 08-30-2008, 01:24 PM
Alan
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Default Re: Working in a foreign country, paying into social security.

D. Stussy wrote:
- quote -

> "PeterL" <po.ning[at]gmail.com> wrote in message
> news:1c0aaa08-b35a-4053-ad47-53e8516eb437[at]v39g2000pro.googlegroups.com...
> > My son is working in a foreign country for a non American company. He
> > is paid in local currency. He is about 6 quarter shy of "vesting"
> > with social security. Is it possible for him to pay into social
> > security himself? He is an employee, not a contractor.

> Some countries' tax treaties with the U.S. provide for credit with the U.S.
> system if he's paying into a foreign equivalent system. You need to check
> the treaty of the country he's in (if there is one).

The Totalization Agreements (tax treaties) with other countries
allow for receiving credit for work performed in a foreign
country where you had to pay into that country's equivalent
social security system. One can use those work credits to qualify
for US benefits if one does not have enough work credits in the
US. However, one does not receive any contribution credits for
the time worked in a foreign country. In other words, you get the
quarters worked but your foreign earnings stay with the foreign
country. Your US benefit is based on contributions to the SSA
system and quarters of work including foreign service. Obviously,
a reduced benefit... but at least some benefit.

As the earnings stay in the foreign country, it is also possible
to qualify for a social security benefit from the foreign country
using the same period of time worked in that country.

Information on Totalization Agreements is at:
http://www.irs.gov/businesses/small/...105254,00.html
http://www.ssa.gov/international/tot...greements.html

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #2  
Old 08-30-2008, 04:45 AM
D. Stussy
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Posts: n/a
Default Re: Working in a foreign country, paying into social security.

"PeterL" <po.ning[at]gmail.com> wrote in message
news:1c0aaa08-b35a-4053-ad47-53e8516eb437[at]v39g2000pro.googlegroups.com...
- quote -

> My son is working in a foreign country for a non American company. He
> is paid in local currency. He is about 6 quarter shy of "vesting"
> with social security. Is it possible for him to pay into social
> security himself? He is an employee, not a contractor.


Some countries' tax treaties with the U.S. provide for credit with the U.S.
system if he's paying into a foreign equivalent system. You need to check
the treaty of the country he's in (if there is one).

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #1  
Old 08-29-2008, 09:37 PM
Lanny Williams
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Default Re: Working in a foreign country, paying into social security.

PeterL wrote:
- quote -

> My son is working in a foreign country for a non American company. He
> is paid in local currency. He is about 6 quarter shy of "vesting"
> with social security. Is it possible for him to pay into social
> security himself? He is an employee, not a contractor.

He is not required to pay into SS but he may choose to do so. Use
Schedule SE with the US tax return to report the SS wages and pay the
tax. He will have to pay both the employee and employer portions (i.e.
the 15.3%.) Once he makes this choice, he must continue to make the
annual payment for as long as he is employed by this company.

Lanny K. Williams, C.P.A.
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 
Old 08-29-2008, 07:38 PM
Arthur Kamlet
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Posts: n/a
Default Re: Working in a foreign country, paying into social security.

In article <1c0aaa08-b35a-4053-ad47-53e8516eb437[at]v39g2000pro.googlegroups.com> ,
PeterL <po.ning[at]gmail.com> wrote:
- quote -

> My son is working in a foreign country for a non American company. He
> is paid in local currency. He is about 6 quarter shy of "vesting"
> with social security. Is it possible for him to pay into social
> security himself? He is an employee, not a contractor.



Social Security does not have voluntary payments, and you are
limited to four quarters of social security credit in any
calendar year.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #-1  
Old 08-29-2008, 07:29 PM
PeterL
Guest
 
Posts: n/a
Default Working in a foreign country, paying into social security.

My son is working in a foreign country for a non American company. He
is paid in local currency. He is about 6 quarter shy of "vesting"
with social security. Is it possible for him to pay into social
security himself? He is an employee, not a contractor.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 

Tags
country, foreign, paying, security, social, working
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