Foreign social security

Barco

How to report foreign social security when there is no tax forms from Croatia, they just don't issue any. Checking around got several different options: to make substitute 1099-R OR add it to Sch 1 , under 8-z and describe what it is OR under Other reportable income. I assume there are many people in same situation and it's strange that there's no directions for it, when there's no Treaty with USA . I've read several advises from different communities and there are always several options. I do understand that reported income will be the same and taxed  the same if filed on any of those substitute Forms but it would be nice to know what is CORRECT way. Also, if filing manually and mail tax return  it's again an issue as there's no form to fill anyway! Thanks

JanaA

Hello Barco! Unfortunately, FreeTaxUSA currently only supports foreign social security income from Canada and Germany. Since your social security benefits are from Croatia, we are not currently able to support your filing situation.

To answer your general question, the IRS does address the taxation of foreign social security benefits. According to the IRS, "absent application of a particular treaty provision, foreign social security pensions are generally taxed as if they were foreign pensions or foreign annuities." Since there is no US-Croatia tax treaty currently in effect, the income would generally be fully taxable in the US. You can find more detail on the IRS website here: www.irs.gov/businesses/the-taxation-of-foreign-pension-and-annuity-distributions

For the specific question of which line or form to use, that is a nuanced area where a tax professional familiar with foreign income reporting would be best suited to advise you, as the correct approach can depend on the nature of the payments and your individual situation.