Do US citizens living abroad pay social security taxes?
U.S. Social Security taxes are normally imposed on American citizens, even when living abroad or working for a foreign employer. However, for expats, the tax treatment varies depending on whether the country of residence has a totalization agreement with the United States.
If you earned Social Security benefits, you can visit or live in most foreign countries and still receive payments. Look up the country on the SSA Payments Abroad Screening Tool to be sure you can receive your payments.
If you are a U.S. citizen or resident living or traveling outside the United States, you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States.
- Belize.
- Costa Rica.
- Ecuador.
- Nicaragua.
- Panama.
- Greece.
- Malta.
- Portugal.
These include public workers who participate in a government pension plan comparable to Social Security. In addition, federal workers, including members of Congress, who have been serving consistently since before 1984 are covered under another retirement plan, so they're also exempt from Social Security taxes.
If IRS considers you to be a foreign person (or nonresident alien) for tax purposes, SSA is required to withhold a 30 percent flat income tax from 85 percent of your Social Security retirement, survivors, or disability benefits. This results in a withholding of 25.5 percent of your monthly benefit.
Luckily, there is no time limit on how long you can live outside the U.S. and still receive monthly Social Security payments. As long as proof of life documents are signed and returned annually, you'll still get paid.
The US is one of the few countries in the world that taxes citizens regardless of where they live and work. Because of this, when a US citizen moves to another country with an income tax, they will have to report their income to both governments and face double taxation. This applies to “accidental Americans” as well.
Do not assume that since you have left the US you are not obligated to file a state tax return. Each state has its own set of rules about whom it considers a “resident” and their own minimum filing requirements. Most states, but not all, also allow the foreign earned income exclusion in determining taxable income.
Americans who retire overseas still have tax obligations. Typically, you will have to file a tax return with both the US government and your new host country. You may even have to file a tax return with the US state you used to live in.
Where in the world can I retire on $2000 a month?
Here are six places overseas where a budget of $2,000 per month allows for a high-quality retirement lifestyle: Cádiz, Spain. Chitré, Panama. Crete, Greece.
The United States generally considers a person with dual U.S. and foreign citizenship a U.S. citizen for Social Security purposes. This does not apply if you are a U.S. citizen and a citizen of a country the United States has an international social security agreement with. This excludes Canada and Italy.

Generally, 401(k) and IRA accounts can be maintained and handled while living abroad permanently; however, restrictions may apply depending on the account type, destination, and local laws. Moving money from a standard 401(k) or IRA to a Roth IRA is taxable and may include immediate tax obligations.
At what age is Social Security no longer taxable? Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
Just like the income tax, most people can't avoid paying Social Security taxes on their employment and self-employment income. There are, however, exemptions available to specific groups of taxpayers. If you fall under one of these categories, you can potentially save a significant amount of money.
Newly hired postal employees are covered under Social Security and Medicare. The Postal Service offers coverage through the Federal Employees' Group Life Insurance (FEGLI) Program.
- No. 1: Keep working while taking benefits early. ...
- No. 2: Be a substantially lower-earning spouse. ...
- No. 3: Be alive in 2034. ...
- Social Security still provides an important foundation for retirement.
US citizens living abroad who fail to file US taxes risk passport denial, penalties, and even criminal charges. The IRS charges penalties for both late filing and late payments.
If you become disabled before your full retirement age, you might qualify for Social Security disability benefits. You must have worked and paid Social Security taxes in five of the last 10 years.
If you are a U.S. citizen, you may receive your Social Security payments outside the U.S. as long as you are eligible for them. However, there are certain countries to which we are not allowed to send payments.
How do I get the $16728 Social Security bonus?
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
Importantly, U.S. citizens are always considered U.S. tax residents, even if they live in a foreign country or claim residency elsewhere. They are subject to citizenship-based taxation, meaning they must report and pay taxes on their worldwide income until they formally renounce their citizenship.
However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($107,600 for 2020, $108,700 for 2021, $112,000 for 2022, and $120,000 for 2023). In addition, you can exclude or deduct certain foreign housing amounts.
Key Takeaways
Dual citizens are often required to file tax returns in both countries. However, tax treaties and other benefits can be used to avoid double taxation. Using these benefits, most US dual citizens who live abroad can erase their US tax liability.