Yes, expatriates (people living outside their home country) can be eligible for U.S. Social Security benefits under certain circumstances. The United States has agreements with many countries regarding Social Security benefits, known as totalization agreements. These agreements help people who have worked in both the United States and another country by allowing them to combine their work credits from each country to qualify for benefits.
Here are some key points regarding expats and Social Security:
- Totalization Agreements: If you’ve worked in the U.S. and another country that has a totalization agreement with the U.S., you may be able to combine your work credits from both countries to qualify for U.S. Social Security benefits.
- Eligibility Requirements: To be eligible for U.S. Social Security benefits, you generally need to have accumulated a certain number of work credits. The exact requirements vary based on your age and the type of benefit you’re applying for (retirement, disability, survivors’ benefits, etc.).
- Applying for Benefits: Expats can apply for Social Security benefits by contacting the nearest U.S. embassy or consulate, or by contacting the Social Security Administration (SSA) directly. It’s important to note that the application process and required documentation may vary depending on your specific situation and the country you’re living in.
- Tax Considerations: While expats can receive Social Security benefits, it’s essential to understand the tax implications. Depending on your income and tax residency status, you may be subject to U.S. taxes on your Social Security benefits. Additionally, some countries may also tax Social Security benefits received by their residents.
- Direct Deposit: If you’re eligible for Social Security benefits, the SSA encourages beneficiaries living abroad to sign up for direct deposit to receive their payments electronically. This is often the most convenient and secure way to receive benefits while living outside the U.S.
Before making any decisions regarding Social Security benefits as an expatriate, it’s advisable to consult with Matthew Jennings, JD, MBA, EA, RFC®, CEP®, CES™, aka Tax King Matt. He can provide personalized guidance based on your specific circumstances and help you navigate the complexities of cross-border benefits.