Foreign Pension distributions , Income and Social security
Do foreign distributions from foreign pensions, count as income?
Does a tax-free lump sum as part of a foreign annuity count as income in US? What if a person is a dual citizen where there is a tax treaty.
We keep hearing wait till 70 to take social security then we find out that if earning more than approx. $25K / year you can get taxed at 50%- 85%. So, why wait?
Terry Says
You need some good tax advice from someone who understands the international tax situation you’re in. I recommend https://www.taxesforexpats.com/
The taxation for foreign income depends on your tax situation abroad, and whether there is a treaty offsetting your tax obligation for this income.
The second question about Social Security shows that you’re confused.
Please read this: https://www.terrysavage.com/when-to-take-social-security/
You should wait until age 70, if possible, to get the highest base SS check — upon which future inflation adjustments will be made.
The taxability of those benefits depends on your total income.
The earnings limitations apply to those who take Social Security before full retirement age!
