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| My interest wrote: - quote - > Thanks. One thing I am not exactly sure (this is why I asked this > question in the first place) is whether paying 1 full year UK NI will > be treated as paying 1 full year US SSN (i.e. earning 4 credits)? > > From you reply, the answer seems to be yes. Can you confirm? The > reason I am a bit worried is because, in UK, you need to pay 40 years > NI in order to qualify a full state pension while in US you only need > 40 credits (i.e. 10 years) in order to fully fund your account, So > whether this will imply you need 4 year UK NI in exchange for 1 year > US SSN? Thanks. Verbatim from the treaty: (a UK contribution is a week) ================================================== =============== # In determining eligibility for benefits under paragraph 1, the Agency of the United States shall credit: 1. one quarter of coverage for every thirteen contributions or fraction thereof paid or credited in any contribution year before April 6, 1975 under the laws specified in Article 2.1(b)(i) and (ii); and 2. one quarter of coverage for every thirteen contributions calculated in accordance with Article 9.5, or fraction thereof, paid or credited in any United Kingdom tax year beginning after April 5, 1975 under the laws specified in Article 2.1(b)(i) and (ii); and 3. one quarter of coverage for each annual contribution factor of 0.25 or any part thereof which has been derived under the laws specified in Article 2.1(b)(iii); and 4. one quarter of coverage for every thirteen contributions or fraction thereof paid or credited in any contribution year under the laws specified in Article 2.1(b)(iv); provided, however, that periods of coverage credited under United States laws shall not exceed four quarters of coverage in any calendar year. ================================================== ============== Basically, if you had covered work all year in the UK, the US would give you 4 quarters of credit. -- << ------------------------------------------------------- > << 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. > << ------------------------------------------------------- > |
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| Thanks. One thing I am not exactly sure (this is why I asked this question in the first place) is whether paying 1 full year UK NI will be treated as paying 1 full year US SSN (i.e. earning 4 credits)? - quote - > From you reply, the answer seems to be yes. Can you confirm? The
NI in order to qualify a full state pension while in US you only needreason I am a bit worried is because, in UK, you need to pay 40 years 40 credits (i.e. 10 years) in order to fully fund your account, So whether this will imply you need 4 year UK NI in exchange for 1 year US SSN? Thanks. -- << ------------------------------------------------------- > << 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. > << ------------------------------------------------------- > |
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| My interest wrote: - quote - > I am not sure whether this is the right group to ask this question,
credits (max of 4 credits per year for covered earnings), then> but I cannot find a more suitable forum so just try my luck here. (If > anybody knows a more suitable forum, please let me know.) > I am a British citizen and has paid 6 years UK NI (SSN tax equivalent) > and 5 years US SSN tax already. If I understand the US/UK social > security treaty correctly, does it mean that I am already qualified 1/ > of the US social security payment upon reaching retirement age > already? > Thanks. Assuming that between the UK & US you have the equivalent of 40 you would be eligible for a US benefit. In addition, if you have the equivalent of 11 years of service between the two countries, you would appear to be eligible for a reduced basic pension from the UK. If you reside in the US, you can apply for US benefits at any US SSA office and simultaneously apply for UK benefits by using Form SSA-2490. If you reside in the UK, contact the benefits folks at the US Embassy in London at 207-499-9000 to apply for US benefits. -- << ------------------------------------------------------- > << 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. > << ------------------------------------------------------- > |
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| I am not sure whether this is the right group to ask this question, but I cannot find a more suitable forum so just try my luck here. (If anybody knows a more suitable forum, please let me know.) I am a British citizen and has paid 6 years UK NI (SSN tax equivalent) and 5 years US SSN tax already. If I understand the US/UK social security treaty correctly, does it mean that I am already qualified 1/ of the US social security payment upon reaching retirement age already? Thanks. -- << ------------------------------------------------------- > << 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 |
| ssn, treaty, us or uk |
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