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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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I am a non-resident, non us citizen, and i received 6400 in

Customer Question

i am a non-resident, non us citizen, and i received 6400 in social security benefits reported on form ssa-1042s, i had federal withholding in the amount of 1600, if i file an income tax return for 2015, would i get a refund of the amount withheld?
Submitted: 4 months ago.
Category: Tax
Expert:  Lev replied 4 months ago.

The U.S. Internal Revenue Code (IRC) requires the Social Security Administration (SSA) to withhold nonresident alien tax from certain Social Security monthly benefits. If you are a nonresident alien receiving retirement, disability or survivors benefits, SSA will withhold a 30 percent flat tax from 85 percent of those benefits unless you qualify for a tax treaty benefit. This results in a withholding of 25.5 percent of your monthly benefit amount.

However - your ACTUAL tax liability is determined on your tax return - and specifically is based the country where you are a resident.

Please specify.

Customer: replied 4 months ago.
i am a resident of mexico
Expert:  Lev replied 4 months ago.

As you might know - there is a tax treaty in effect between th US and Mexico

Here is the document - see page 21

Pensions, Annuities, Alimony, and Child Support
1. Subject to the provisions of Article 20 (Government Service):
b) social security benefits and other public pensions paid by a Contracting State to a resident of the other Contracting State or a citizen of the United States shall be taxable only in the first-mentioned State.

Thus your social security benefits are taxed in the US only and not taxable in Mexico.

Expert:  Lev replied 4 months ago.


Under the US tax law - 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% flat tax rate.

Thus - based on your information - you are NOT entitled fro any refund.

Your tax liability is exact the same as your withholding. Filing your tax return would not make any difference.

Sorry if you expected differently.

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