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

[itonewbie · Accepted solution]

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.

[neil]

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?

[poolcleaner]

And for that you give a Not Helpful? Read the treaties with the two countries.  You just received expert advice.

[itonewbie]

@poolcleaner I just don't get it.

@neil Yes, there are different tax treatments for French and German social security.  My response points you in the right direction and provided information above and beyond what you asked for in your post.  And this is not helpful?  I would have otherwise gladly provided more guidance but it looks like you prefer to do your own research.

[leonnazarian1]

That is a nice response. Can you send me a link to an article or some authority that would corroborate your view point. I am particularly interested to know whether foreign pension (that was treaty exempted from fed t/r) would be ALSO exempted from NY state t/r. I'd really appreciate. 

LN.