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Receiving Social Security Abroad: Electronic Payments and Tax Withholding

This guide presents selected U.S. government consumer education from Social Security Administration. References to “we” or “us” in the source material refer to the issuing agency. Source dates and links appear below.

If your check is lost or stolen

It usually takes longer to deliver paper checks outside the United States. Delivery time varies from country to country and your check may not arrive the same day each month. If you do not receive your check after a reasonable waiting period, or if it is lost or stolen, contact Social Security or your FBU. Contact information is in the last section of this publication.

We will replace your check as soon as possible. Please try to keep your check safe since it takes time to replace a check for a beneficiary living outside the country.

Electronic payments

Direct deposit has several advantages. You never have to worry about your check being delayed in the mail, lost, or stolen.

With direct deposit, you receive your payment much faster than if you receive payment by check (usually 1 to 3 weeks faster than check deliveries). When we deposit benefits to a financial institution, you also may avoid check cashing and currency conversion fees.

If you did not sign up for electronic payments when you applied for benefits, you should do so immediately. To learn more about how to easily switch from a paper check to electronic payment, visit Treasury’s Go Direct website or call 1-877-874-6347.

You may also enroll by phone, by calling Treasury’s electronic Payment Solution Center at 1-800-333-1795. If you use a United States financial institution you can also create a personal my Social Security account and start or change direct deposit online. To learn more about opening a bank account, please visit www.fdic.gov/getbanked.

Even when you get your payments by direct deposit, you must let us know your residence address.

Unless one of the payment restrictions described in this publication applies, we can deposit your benefits directly into your account at a U.S. financial institution no matter where you live. If you live outside the United States, we can deposit your benefits into your account at a financial institution in any country that has an international direct deposit agreement with the U.S. We cannot deposit your benefits if a payment restriction applies.

To see a list of countries that have international direct deposit agreements with the U.S., visit: www.ssa.gov/international/ countrylist6.htm, or contact your nearest Social Security office or FBU. Contact information is in the last section of this publication.

Another option to receive your benefits electronically is to use the Direct Express debit card. You do not need a bank account. With the Direct Express card program, we deposit your federal benefit payment directly into your card account. Your monthly benefits are available on your payment day. You can use the card to make purchases, pay bills, or get cash at thousands of locations. Many transactions are free. Call the toll-free Direct Express hotline at 1-800-333-1795 or sign up online at www.USDirectExpress.com. If you are outside the U.S., call the international number (collect) at 1-765-778-6290 for Direct Express services. Social Security also can help you sign up.

To find out more about these or other electronic payment options, contact Social Security or your FBU. Contact information is in the last section of this publication.

Income tax

If you are a U.S. citizen or a permanent resident of the United States (Green Card holder), you are subject to U.S. income tax laws no matter where you live. This means that your income, including up to 85% of the Social Security benefits you get, may be subject to federal income tax.

If you file a federal income tax return as an individual and your combined income is $25,000 to $34,000, you may have to pay taxes on up to 50% of your benefits. “Combined income” amounts to your adjusted gross income added to your nontaxable interest added to 50% of your Social Security benefits. If your combined income is over $34,000, you may have to pay taxes on up to 85% of your Social Security benefits.

If you file a joint tax return, you may have to pay taxes on up to 50% of your Social Security benefits. This happens if you and your spouse have a combined income of $32,000 to $44,000. If your combined income is more than $44,000, you may have to pay taxes on up to 85% of your Social Security benefits.

If you are a member of a couple and file a separate return, you probably will pay taxes on your benefits.

If you are not a U.S. citizen, or you are not a permanent resident of the United States, we will withhold a 30% federal income tax from 85% of your benefit amount, unless you meet the conditions of an income tax treaty that reduces your tax rate. This results in 25.5% withholding of your monthly benefit amount. The U.S. has treaties with Canada, Egypt, Germany, Ireland, Israel, Italy, Japan, Romania, and the United Kingdom (defined as England, Scotland, Wales, and Northern Ireland) that eliminate this tax. Under the tax treaty with Switzerland, benefits paid to residents of Switzerland who are not U.S. citizens are taxed at a rate of 15%. In addition, the portion of Social Security benefits based on U.S. federal, state, or local government employment paid to persons who are both nationals and residents of India are exempt from this tax. (This list of countries is subject to change.)

You can use the Alien Tax Screening Tool to help you determine if your benefits are subject to this nonresident alien tax withholding or if you qualify for a tax treaty benefit. The Alien Tax Screening Tool is located on our website at: www.ssa.gov/international/ AlienTax.html.

At the end of the year, we will send you a statement showing the amount of benefits we paid you during the year and any income tax we withheld.

Many foreign governments tax U.S. Social Security benefits. U.S. residents planning to live in another country should contact that country’s embassy in Washington, D.C., for information.

Sources and publication details

The federal agency source text is U.S. government work in the public domain. Fynoptic selected, adapted, and formatted it for this guide. No agency endorsement is implied. Follow the linked sources for current program details and the rules applicable to your circumstances.

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