Shorebird
Level 3

Thank you for your response.  I very much appreciate your help.

Not sure you have seen my second post yesterday or whether your reply is for both.

I do think and know that the social security earned in Greece is taxed correctly by the Greek Government and in accordance with the Social Security Administration's agreement with Greece.  

Both are reported under Social Security on the 1040.  

According to Article XI of the Treaty and paragraph 1 it states that it is EXEMPT from taxation by the other country (not that credit is given)  by the other country.  Somewhere in the front part of the Treaty is says that the treatment is reciptrocal.  

I know that you are very familiar with foreign taxation but my confusion was why residing in Greece if you are a U.S. person you would exempt the soc. sec. income and if you live in the U.S. you could not and would need to use Form 1116 for a tax credit.

Additionally, you mentioned Article XIV which deals with the Tax Credit.  This means all other income taxes posed.   And in my humble opinion (and after one week of research) I would think this corresponds to Article 2477 mentioned in the U.S. Master Tax Guide under Creditable Foreign Taxes.

The second paragraph dealing with this says "no credit or deduction is allowed for social security taxes paid or accrued to a foreign country with which the United States has a social security agreement" (which Greece has).

All this has got me mystified and baffled.

Have a good day!

 

 

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