Can social security deduct foreign pension income from ss benefits?

[oohlalaw]

We are trying to find out if social security deducts foreign pension income from a US citizen's social security benefit. Background:

- US citizen worked in the Netherlands for 15 years and paid taxes in NL during that time.
- No social security credits were earned during the 15 years of working abroad.
- Returned to USA and worked here for many years thereafter.
- Dutch pension will start to be paid this year.
- Social security can be started this year.
- Social security amount is based on credits and amounts earned while working in the USA.

When it comes time to start social security, will the Dutch pension amount be deducted from the social security benefit? Income levels in both countries are fairly modest.

Someone told us that even though no social security credits or US income earned amounts were accrued during the 15 years of not working in the USA that social security can lower the social security monthly benefit about by the amount of the foreign pension.

Any links about this would be appreciated. Thanks!

 

[tranquility]

Google:
tax treaty Netherlands

Go to the IRS link for the original documents that will help you with an answer to your questions. It is thick reading and you might not get an easy answer without guidance from a person experienced in the issues.

 

[oohlalaw]

Google:
tax treaty Netherlands

Go to the IRS link for the original documents that will help you with an answer to your questions. It is thick reading and you might not get an easy answer without guidance from a person experienced in the issues.

Will hope for the latter. We are no good at reading tax treaties or negotiating our way around huge gov't sites ;-)

Thanks.

 

[tranquility]

Try it first. Maybe your specific facts will come up in the treaty. While thick, they are organized by sections. Rereading sometimes can bring knowledge--even if you don't understand the first time.