Frequently Asked Questions: U.S. Social Security Benefits Abroad

Source: AARP.org | September 30, 2004

Can I receive Social Security payments when I am outside the U.S.?

How will the "Foreign Work Test" affect me?

If I become a citizen of the country in which I plan to retire, will I continue to receive Social Security payments?

Will my Social Security benefits be affected if I am also eligible for a pension from work not covered by Social Security?

Will I have to pay U.S. taxes on my Social Security benefits?

Are my Social Security payments subject to taxation by foreign governments?

Can my Social Security be deposited directly into a financial institution?

Will my Social Security payments be paid in U.S. dollars?

Where do I report my change of address, work status or other events that may affect my Social Security payments?

Where can I get additional information?

Answers to Your Social Security Benefits Abroad Questions

About Social Security: Rules and countries named in the following answers are subject to change from time to time, so you will want to confirm specific items of interest with the United States Social Security Administration (SSA). Their website, www.socialsecurity.gov, is a valuable resource for information about all of Social Security’s programs.

Q: Can I receive Social Security payments when I am outside the U.S.?
A: Yes. If you are a U.S. citizen, your may receive your Social Security payments as long as you are eligible for them. However, U.S. Treasury Department regulations do not allow us to send payments to you, or to a bank or an individual for you if you are in Cuba or North Korea. You can be paid benefits that were withheld because you were in one of these countries if:

• You are a citizen or national of the United States; and
• You are qualified for those payments; and
• You leave that country and go to one to which we can send payments.

Generally, because of SSA restrictions, we cannot send payments to you, or to a bank or an individual for you, if you are in Cambodia, Vietnam or areas (other than Armenia, Estonia, Latvia, Lithuania, and Russia) which were in the former Soviet Union. However, we have established a special payment procedure that permits the payment of benefits to certain eligible beneficiaries in these countries. For more information about this procedure, you should contact the nearest U.S. Embassy or consulate. If you cannot be paid under this special procedure, you can be paid benefits for which you were qualified and which were withheld because you were in one of these countries if:

• You are qualified for those payments; and
• You leave that country and go to one where we can send payments.

Q: How will the "Foreign Work Test" affect me?
A: Under the "Foreign Work Test," a monthly benefit is withheld for each month in which a beneficiary younger than full retirement age works more than 45 hours outside the U.S. in employment or self-employment that is not subject to U.S. Social Security taxes. It does not matter how much you earned or how many hours you worked each day.

If your work is subject to U.S. Social Security taxes, the same annual retirement test that applies to people in the U.S. applies to you.

Q: If I become a citizen of the country in which I plan to retire, will I continue to receive Social Security payments?
A: Generally, if you become a citizen of another country and keep your U.S. citizenship (that is, you have dual citizenship), you can continue to receive benefits outside the U.S. However, if you do not keep your U.S. citizenship, your benefits could be affected by a change of citizenship. The publication, "Social Security--Your Payments While You Are Outside the United States," provides more information about this. You may also contact the nearest U.S. Embassy or consulate . If you are in the U.S., you may contact your local Social Security office.

Q: Will my Social Security benefits be affected if I am also eligible for a pension from work not covered by Social Security?
A: If you become entitled to a U.S. Social Security retirement or disability benefit and you also start to receive a monthly pension, such as a foreign social security or private pension, which is based in whole or in part on work not covered by U.S. Social Security, your U.S. Social Security benefit may be smaller. A different formula may be used to figure your U.S. Social Security benefit. For more information, see the factsheet: The Windfall Elimination Provision or contact the nearest U.S. Embassy or consulate.

Q: Will I have to pay U.S. taxes on my Social Security benefits?
A: The Social Security benefits paid to a U.S. citizen outside the U.S. are taxed in the same manner as those paid to a U.S. citizen living in the U.S.

Q: Are my Social Security payments subject to taxation by foreign governments?
A: Many foreign governments do tax U.S. Social Security benefits. U.S. residents planning to live in another country should contact that country's embassy in Washington, DC for specific information.

Q: Can my Social Security benefits be deposited directly into a financial institution?
A: Social Security payments may be deposited directly into your account at either a U.S. financial institution or financial institutions in the country where you live. 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 are paid by check (usually one to three weeks faster than check deliveries). You also avoid check cashing and currency conversion fees. Some countries where direct deposit payments are available can be found at: http://www.socialsecurity.gov/pubs/10137.html#direct/.

To determine if direct deposit or other forms of electronic payment are available in the country where you live or plan to live-or to sign up for direct deposit-contact the nearest U.S. Embassy or consulate or write to the Social Security Administration, P.O. Box 17769, Baltimore, Maryland, 21235-7769, U.S.A.

If you are in the U.S., you may contact your local Social Security office.

Q: Will my Social Security payments be paid in U.S. dollars?
A: All Social Security payments are calculated in U.S. dollars. However, in foreign countries where direct deposit by electronic fund transfer is available, and the individual chooses this method of payment, the payments are converted to the currency of that foreign country before they are deposited.

Q: Where do I report my change of address, work status or other events that may affect my Social Security payments? Where can I get additional information?
A: You can report by contacting the Social Security Administration in person, by mail, or telephone.

If you live in the British Virgin Islands, Canada or Samoa, you can send your report to the nearest U.S. Social Security office. If you live in Mexico, you can send your report to the nearest U. S. Social Security office, Embassy or consulate. If you live in the Philippines, you can send your report to: Veteran Affairs Regional Office, SSA Division, 1131 Roxas Blvd., Manila, Philippines. In all other countries, you can report to the nearest U.S. Embassy or consulate.

If you find it easiest to contact the Social Security Administration by mail, send your report by airmail to: Social Security Administration, P.O. Box 17769, Baltimore, Maryland, 21235-7769, USA. Be sure to include the name of the person(s) about whom the report is being made, what is being reported and the date it happened and the Social Security claim number. If you are in the U.S., you may contact your local Social Security office.

Q: Where can I get additional information?
A: For more information about how being outside the U.S. may affect your payments, see SSA’s Publication No. 05-10137, “Your Payments While You Are Outside the United States at: www.socialsecurity.gov/pubs/10137.html.