Social Security benefits from Japan

[mactoolsix]

Client is a US citizen living in the US and is now receiving Social Security benefits from Japan. Treaty says they are taxable by US (contracting state), however do we treat them like US Social Security (max 85% taxable) or as normal income?

[oceanlovin'ea]

add to US amounts

I have clients who receive benefits from England and from Germany. They get no forms from there. They add up the amount that was deposited in their bank account. Then I add that to the amount on their 1099 that they receive from social security here.

Never had a problem doing that.

Linda, EA

[mactoolsix]

I have clients who receive benefits from England and from Germany. They get no forms from there. They add up the amount that was deposited in their bank account. Then I add that to the amount on their 1099 that they receive from social security here.

Never had a problem doing that.

Linda, EA

California taxes all foreign social security same as annuity income, which got us to thinking maybe the Federal return should be pension (code 7 or H) instead of social security income.
These clients did not receive any forms either, so we just took the amounts from the bank statement.

Thanks for the reply!
Mike, EA