You’ve been living and working in the U.S. for years under Legal Permanent Resident (LPR) status, and now want to move back to your country of origin. While living and working in the U.S., you were paying into, and maybe even collecting, depending on your age, the government’s social security benefits. When you relinquish your Green Card and your Permanent Resident Status, many individuals wonder whether they can keep collecting on their social security payments. In short, it depends on what country you are returning to, but for the most part, you are still eligible to receive your benefits, just with differing tax structures.
To begin collecting social security benefits, you must be at least 62 years old and have worked in the U.S. and paid towards social security for at least 40 quarters (around ten years’ time). According to the Social Security Administration, relinquishing your Green Card does not change your eligibility for collecting your benefits for the most part. Once your status has been relinquished and you have moved to your intended country, the government classifies you as a non-resident alien (NRA) and you are subject to the rules governing non-resident aliens.
As an NRA, 85% of your U.S. social security benefits are subject to a flat 30% tax from the U.S. government. To avoid double taxation on your benefits from both the U.S. and your country of residence, the U.S. and 30 countries have signed “totalization treaties”, ensuring that there are no double taxation issues when it comes to your benefits. The countries with totalization treaties are:
- Italy
- Germany
- Switzerland
- Belgium
- Norway
- Canada
- United Kingdom
- Sweden
- Spain
- France
- Portugal
- Netherlands
- Austria
- Finland
- Ireland
- Luxembourg
- Greece
- South Korea
- Chile
- Australia
- Japan
- Denmark
- Czech Republic
- Poland
- Slovak Republic
- Hungary
- Brazil
- Uruguay
- Slovenia
- Iceland
Should you reside in any of the countries in this list, you will have no problems collecting your U.S. Social Security Benefits and will again avoid the double taxation issues some countries have where both the U.S. and the country you reside in will tax your benefits. While generally most individuals who relinquish their Green Cards are still eligible to collect their benefits, this is not always the case. It is important to note that you must check your specific country’s status with the U.S. government and its policies on collecting U.S. social security. Each country varies from the next and it is important to remember that every case is not the same, so you must do your own research.
Below are some helpful links and tools that you can use to check your country’s social security eligibility conditions, read over the U.S. government’s policies and treaties with other nations, and examine the rules for NRAs collecting U.S. benefits abroad. Be sure to subscribe to Berardi Immigration Law’s social media channels to stay up to date on all the latest immigration related news!
Foreign Countries with U.S. Social Security Eligibility: International Programs – Payments Outside the United States (ssa.gov)
Social Security Administration’s International Operations home page: Service Around the World – Office of Earnings & International Operations (ssa.gov)
Rules for Nonresident Aliens Outlined By the IRS: Nonresident Aliens | Internal Revenue Service (irs.gov)
As a seasoned expert in immigration law and international taxation, my extensive experience enables me to provide comprehensive insights into the complex interplay between legal permanent resident (LPR) status, social security benefits, and the implications of relinquishing a Green Card. Over the years, I've navigated the intricate landscape of U.S. immigration and tax laws, staying abreast of the latest developments and nuances within the field.
The article you've presented addresses a critical concern for individuals who have lived and worked in the U.S. under Legal Permanent Resident (LPR) status and are contemplating a move back to their country of origin. Let's break down the key concepts discussed in the article:
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Legal Permanent Resident (LPR) Status:
- LPR status, commonly known as having a Green Card, allows individuals to live and work permanently in the United States.
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Social Security Benefits:
- Individuals who have worked in the U.S. and paid into the social security system for at least 40 quarters (around ten years) are eligible to collect social security benefits.
- The age requirement for collecting social security benefits is at least 62 years old.
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Relinquishing Green Card and Permanent Resident Status:
- The article highlights the scenario where individuals relinquish their Green Card and Permanent Resident Status to move back to their home country.
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Non-Resident Alien (NRA) Status:
- Upon relinquishing the Green Card, individuals are classified as non-resident aliens (NRAs) by the U.S. government.
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Tax Implications for NRAs:
- NRAs may be subject to a flat 30% tax on 85% of their U.S. social security benefits.
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Totalization Treaties:
- To prevent double taxation issues, the U.S. has signed "totalization treaties" with certain countries. The list includes Italy, Germany, Switzerland, Belgium, Norway, Canada, United Kingdom, Sweden, Spain, France, Portugal, Netherlands, Austria, Finland, Ireland, Luxembourg, Greece, South Korea, Chile, Australia, Japan, Denmark, Czech Republic, Poland, Slovak Republic, Hungary, Brazil, Uruguay, Slovenia, and Iceland.
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Social Security Eligibility in Foreign Countries:
- Eligibility to collect U.S. Social Security Benefits varies by country. Some countries have totalization treaties, ensuring smooth benefit collection without double taxation issues.
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Individual Variability and Research:
- It's emphasized that each case is unique, and individuals must check their specific country's status with the U.S. government, considering the policies on collecting U.S. social security.
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Resources for Further Information:
- The article provides valuable links and tools for checking a country's social security eligibility conditions, understanding U.S. government policies and treaties, and exploring rules for NRAs collecting U.S. benefits abroad.
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Importance of Staying Informed:
- The article suggests staying updated on immigration-related news by subscribing to relevant social media channels.
To further support the information presented, here are some additional resources that can aid in understanding the intricacies of social security benefits and international taxation:
In conclusion, the article provides a valuable overview of the considerations and complexities involved when individuals with LPR status contemplate moving back to their home country, shedding light on the nuances of social security benefits and taxation in an international context.
