U.s. Social Security (Totalization) Agreement

The United States has agreements with several countries, called tabination agreements, to avoid double taxation of income with respect to social security taxes. These agreements should be taken into account when it is established whether a foreigner is subject to U.S. Social Security/Medicare tax or whether a U.S. citizen or resident alien is subject to a foreign country`s social security taxes. Special provisions apply to self-employed persons who, in the absence of an agreement, would have to pay to both countries the person subject to social security tax (see table below). If you`ve worked in the U.S. for less than 10 years and think you`re entitled to Social Security benefits, follow these basic steps: The authorization law contained in the 1977 amendments is Section 233 of the Social Security Act (42 U.S.C. Agreements to coordinate social security across national borders have been commonplace in Western Europe for decades. Below is a list of agreements entered into by the United States and the date of entry into force of each agreement.

Some of these agreements were subsequently revised; the date indicated is the date of entry into force of the original agreement. Credits acquired in the country with a tabonization agreement can be transferred to another party (i.e.: From Great Britain to the United States or vice versa), if a duplicate does not have a sufficient number of credits in one of the countries to qualify for benefits. While they are transferred to another country`s social security system, these credits do not reduce the number of credits accumulated in another country – so you may be allowed to receive social security benefits from both schemes once you reach retirement age. . . .