Retaining Social Security Benefits for Non Resident

Citizenship doesnt matter in qualifying for a SS pension. As long they paid in 40 quarters of taxes under a legal SS number. Contact a SS office for one's payment history summary.

The difficulty is that SS does not send money abroad for non-citizens. The client would have to have to established a US-based bank account for check deposits. This may not be too hard in this era of online banks.

There is a list of countries that Social Security does send funds to a foreign bank. Peru is on that list.

Social Security Administration Office of International Operations P.O. Box 17769 Baltimore, Maryland 21235-7769

You may also call SSA's Office of International Operations directly at 410-965-5404, or send a fax to 410-965-6539. Calls are answered only in English and during normal business hours for the Eastern U.S.

Isn't social security income US source income? If yes, then it should be on page 1 of 1040-NR, usually taxed at lower rates, with a foreign tax credit for tax on this income paid to Peru.

Is there a treaty between Peru and US? I didn't see one on

That is what I thought, so part 2 of this saga is that the Peruvian citizen received a letter from Social Security saying that they need to come in an establish their residency within 15 days or they lose their benefit. That struck me as a very short timeline and it also struck me as wrong that they would threaten as the consequence of not being a resident the total loss of benefit. Has anyone seen one of these notices before, and what is the right response to this?

She has a bank account in the US and also has relatives here, so the problem is making sure to understand her legal rights and try to understand the correct way to respond to Social Security.

OK, I see it in the instructions. If no treaty, then flat 30% tax on

Line 8?Social security benefits (and tier 1 railroad retirement benefits treated as social security). 85% of the U.S. social security and equivalent railroad retirement benefits you received are taxable. This amount is treated as U.S. source income not effectively connected with a U.S. trade or business. It is subject to the 30% tax rate, unless exempt or taxed at a reduced rate under a U.S. tax treaty. Social security benefits include any monthly benefit under title II of the Social Security Act or the part of a tier 1 railroad retirement benefit treated as a social security benefit. They do not include any Supplemental Security Income (SSI) payments.