Dutch Soc Sec

[Possi]

My client was chatting yesterday and mentioned that she and her brother get SS from her Dutch home... Netherlands?? I don't know...

So, I said, you must have interest in a foreign account that triggers a taxable event for reporting.

She said her brother is a CPA and she asked him about it, and he told her it isn't enough to trigger reporting.

Well, a CPA trumps my current credentials which is a zero, so I trusted her, and I knew I would bring it HERE! LOL

So, is there a floor before you have to report this? I have one client for whom I report foreign assets every year, for the same thing.

[oceanlovin'ea]

i have a client who gets social security from Germany. They never report anything but it is part of her worldwide income and is taxable to her. We add the money that has been deposited in her account and add it to her US social security.

You have to check the treaty agreements with the country the social security comes from to see how it might affect her taxes.

I know that is different than what you were asking about but it is another part of the income.

Linda EA

[Gretel]

I agree, German SS is added to US SS, might be same for Netherlands.

Even if not going on tax return, you might want to ask if they own any property in the Netherlands. This is new for this year and IRS wants to have reported if over $50,000 foreign property owned with stiff penalties. It's not just income producing property they want to know about.

[BP.]

My client was chatting yesterday and mentioned that she and her brother get SS from her Dutch home... Netherlands?? I don't know...

TaxPro Journal Winter 2012 just landed on my desk, and I see this inside: p. 23-

Question - "How are social security benefits paid to a US citizen by the Netherlands (yes, they are Dutch ) taxed in the US?"

Answer- "Social security payments from the Netherlands paid to a US citizen or resident are not taxed in the US."

[Possi]

Thanks

TaxPro Journal Winter 2012 just landed on my desk, and I see this inside: p. 23-

Question - "How are social security benefits paid to a US citizen by the Netherlands (yes, they are Dutch ) taxed in the US?"

Answer- "Social security payments from the Netherlands paid to a US citizen or resident are not taxed in the US."

GET OUTTA HERE! It directly answered my question?? LOL
Mine is probably sitting in my mailbox. I LOVE that pub!

[Koss]

Dutch

Dutch Social Security. n. An oral agreement in which your dinner date pays one half of your self-employment tax.

[thomtax]

TaxPro Journal Winter 2012 just landed on my desk, and I see this inside: p. 23-

Question - "How are social security benefits paid to a US citizen by the Netherlands (yes, they are Dutch ) taxed in the US?"

Answer- "Social security payments from the Netherlands paid to a US citizen or resident are not taxed in the US."

I took a quick look at website for Tax Pro Journal. Just curious, is this part of HRB?

Thanks,
LT

[BP.]

Is this part of HRB?

No, it is NATP.

GET OUTTA HERE! It directly answered my question?? LOL

I know, right??

I was going to mention that there is great info there and in the NATP TaxPro Monthly for Feb on 1099-A & 1099-C treatment. The 1099-As are plentiful already this year.

[RitaB]

But

Dutch Social Security. n. An oral agreement in which your dinner date pays one half of your self-employment tax.

But only if the activity is regular and continuous. Not a hobby.

[Possi]

Love It!

I needed that! love it~~