US Citizens that receive Social Security benefits from Canada and the UK are subject to income taxes on that income in the US. It is supposed to be treated similar to OUR Social Security. The question however is since we have a 20 step formula to determine the amount that is taxable on the US tax return; do we use the same formula to determine the taxable amount of the "foreign" Social Security received?
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Just add it to the US social security total but don't forget to account for the exchange rate.
Canadian is taxed the same way as US. UK is not -- "other income," 100% regardless of AGI.
Thank you for the reply. So for the Canadian SS; I would use the same formula as the US Social Security; such as the max of 85%; but I would use the entire amount as taxable for the UK Social Security.
Thanks again
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