Taxpayer received social security benefits from France & Germany. How is this entered in the system for federal and NYS purposes?

Forum|Forum|6 years ago
December 7, 2019
1 reply
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Lacerte Tax

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Best answer by itonewbie

Your question is about making input but the more important question is whether you have already reviewed the income tax treaties as well as the protocols to determine the appropriate reporting positions. Federal income tax treatments for social security benefits from France and Germany are very different.

In terms of input, foreign social security benefits are fundamentally treated as pension for US tax purposes; you may, therefore, enter them on Line 4 or Line 5. My preference in this case would be to use Line 5 (i.e. Screen 14.1).

NY generally follows all federal income tax treaties. In other words, no NY adjustment would normally be required for treaty positions taken.

itonewbieAnswer

Level 15

Your question is about making input but the more important question is whether you have already reviewed the income tax treaties as well as the protocols to determine the appropriate reporting positions. Federal income tax treatments for social security benefits from France and Germany are very different.

In terms of input, foreign social security benefits are fundamentally treated as pension for US tax purposes; you may, therefore, enter them on Line 4 or Line 5. My preference in this case would be to use Line 5 (i.e. Screen 14.1).

NY generally follows all federal income tax treaties. In other words, no NY adjustment would normally be required for treaty positions taken.

---------------------------------------------------------------------------------Still an AllStar

N

neil11Author

Level 2

The response seems to indicate that there may be different rules that apply to German and French social security benefits. We are not certain of that fact and could use some direction in that area. Further, if we read the response correctly, it says to show the income with other social security income. That being said, would it not be proper to indicate the source at that time?

NEIL ROTH

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