Your Payments While You Are Outside The United States

This document explains how being outside the U.S. may affect your Social Security payments. It also tells you what you need to report to us so we can make sure you receive all the Social Security payments you are entitled to receive. There is information here that tells what you need to report and how to report. This document is also available in French, German, Greek, Italian and Spanish, but only in print format. Copies may be obtained by contacting your nearest U.S. Embassy or consulate or Social Security office.

Regardless of your citizenship, there are certain countries where we are not allowed to send payments—see Part 5.

If you are not a citizen of one of the countries listed above, you cannot use this exception.

If you are not a U.S. citizen and none of these exceptions applies to you, your payments will stop after you have been outside the U.S. for six full months. Once this happens, they cannot be started again until you come back and stay in the U.S. for a whole calendar month. This means you have to be in the U.S. on the first minute of the first day of a month and stay through the last minute of the last day of that month. In addition, you may be required to establish that you have been lawfully present in the U.S. for that full calendar month period. For more information, you may contact the nearest U.S. Embassy or consulate or Social Security office.

Children who cannot meet the residency requirement on their own may be considered to meet it if it is met by the worker and other parent (if any). However, children adopted outside the U.S. will not be paid outside the U.S., even if the residency requirement is met.

The residency requirement will not apply to you if you meet any of the following conditions:

• you were initially eligible for monthly benefits before January 1, 1985; or

• you are entitled on the record of a worker who died while in the U.S. military service or as a result of a service-connected disease or injury; or

• you are a citizen of one of the countries listed in Part 3-A or

• you are a resident of one of the countries with which the U.S. has a Social Security agreement (see Part 3-C).

U.S. Treasury Department regulations prohibit sending payments to you if you are in Cuba or North Korea. In addition, Social Security restrictions prohibit sending payments to individuals in Cambodia, Vietnam or areas (other than Armenia, Estonia, Latvia, Lithuania and Russia) which were in the former Soviet Union. You cannot receive payments while you are in one of these countries, and we cannot send your payments to anyone for you.

If you are a U.S. citizen and are in Cuba or North Korea, you can receive all of your payments that were withheld once you leave that country and go to another country where we can send payments. Generally, if you are not a U.S. citizen, you cannot receive any payments for months in which you live in one of these countries, even though you leave that country and satisfy all other requirements.

If you are living outside the U.S., periodically we will send you a questionnaire to fill out and return. This lets us know whether you are still eligible for benefits. You must return the questionnaire to the office that sent it to you as soon as possible; if you do not, your payments will stop.

In addition to responding to the questionnaire, it is your responsibility to notify us promptly about changes that could affect your payments. If you fail to report something or deliberately make a false statement, you could be penalized by a fine or imprisonment. You may also lose some of your payments if you do not report changes promptly.

Listed below are things that must be reported. An explanation of each is given in the part listed. You may click on the subject to go directly to that part.

Part

7-A Change of address

7-B Work outside the U.S.

7-C Disabled person returns to work or disability improves

7-D Marriage

7-E Divorce or annulment

7-F Adoption of a child

7-G Child leaves the care of a wife,husband, widow or widower

7-H Child nearing age 18 is a full-time student or is disabled

7-I Death

7-J Inability to manage funds

7-K Deportation or removal from the U.S.

7-L Changes in parental circumstances

7-M Eligibility for a pension from work not covered by Social Security

It is very important that you tell us if your address changes so your checks will not be lost or delayed. Even if your payments are being sent to a bank, you must report any change in your home address.

When you write to the U.S. Embassy or consulate or the Social Security Administration about a change of address, please type or print your new address carefully and be sure to include the country and ZIP or postal code. Also, be sure to list the names of all your family members who will be receiving payments at the new address.

If you work or own a business outside the U.S. and you are younger than full retirement age, notify the nearest U.S. Embassy or consulate or Social Security office right away. You should notify us promptly. If you don't, it could result in a penalty which would cause a loss of benefits. This loss of benefits would be in addition to those benefits which might be withheld under one of the work tests explained later in this part.

For persons born in 1937 or earlier, full retirement age is 65. Beginning with persons born in 1938, full retirement age increases two months per year until it becomes age 66 for individuals born in 1943 through 1954.  Then it will gradually increase until it becomes age 67 for those born in 1960 or later.

You must report your work even if the job is part-time or if you are self-employed. Some examples of the types of work which should be reported are work as an apprentice, farmer, sales representative, tutor, writer, etc. If you own a business, you should notify us even if you do not work in the business or receive any income from it.

If a child beneficiary (regardless of age) begins an apprenticeship, notify the nearest U.S. Embassy or consulate or the Social Security Administration. An apprenticeship may be considered work under the Social Security program.

The following work tests may affect the amount of your monthly benefit payment. Work after full retirement age does not affect the payment of benefits.

A monthly benefit is withheld for each month in which a beneficiary younger than full retirement age works more than 45 hours outside the U.S. in employment or self-employment which is not subject to U.S. Social Security taxes. It does not matter how much was earned or how many hours were worked each day.

A person is considered to be working on any day he or she:

• actually works as an employee or self-employed person; or

• has an agreement to work even if he or she does not actually work because of sickness, vacation, etc.; or

• is the owner or part owner of a trade or business even if he or she does not actually work in the trade or business or receive any income from it.

Generally, if a retired worker's benefits are withheld because of his or her work, no benefits can be paid to any other people receiving benefits on his or her record for those months. However, the work of others receiving benefits on the worker's record affects only their own benefits.

Under certain conditions, work performed outside the U.S. by U.S. citizens or residents is covered by the U.S. Social Security program. If your work is covered by U.S. Social Security, the same annual retirement test that applies to people in the U.S. will apply to you.

NOTE: Work by some U.S. citizens and residents outside the U.S. is exempt from U.S. Social Security as a result of international Social Security agreements the U.S. has concluded with the following countries:

(This list is subject to change from time to time.)

If you are working in one of these countries and your earnings are exempt from U.S. Social Security taxes because of the agreement, your benefits will be subject to the Foreign Work Test. For further information on how your benefits may be affected by an agreement, contact the nearest U.S. Embassy or consulate or Social Security office.

If your work is covered by the U.S. Social Security program, you can receive all benefits due you for the year if your earnings do not exceed the annual exempt amount. This limit changes each year. If you want to know the current limit, ask at any U.S. Embassy or consulate or Social Security office or write to us at the address shown under “How To Report” in Part 8.

If your earnings go over the limit, some or all of your benefits will be offset by your earnings.

• If you are younger than full retirement age, $1 in benefits will be withheld for each $2 in earnings above the limit.

• In the year you reach full retirement age, your benefits will be reduced $1 for every $3 you earn over a different, higher limit until the month you reach full retirement age.

You must count your earnings for the whole year in figuring the benefits due you. For most people, this means earnings from January through December.

People who reach full retirement age or older can receive all of their benefits with no limit on their earnings.

The year your benefits start––In figuring your total earnings for the year in which you first become entitled to benefits, count earnings in that year for months both before and after you became entitled.

The year you reach age 18––Your benefits as a child stop at age 18 unless you are a full-time student in an elementary or secondary school or you are disabled. Your earnings for the entire year in which you reach age 18 count in figuring the amount of benefits due you for the year regardless of whether your payments continue or stop at age 18.

If you receive payments because you are disabled, let us know right away if your condition improves or if you go back to work. You can keep receiving payments for up to 9 months while you are working. This 9-month period is called a “trial work period.” The trial work period gives you a chance to test whether or not you are able to work without worrying about having your payments stopped. If, after 9 months, you are able to continue working, you will get payments for 3 more months before they stop. If you are not able to keep working, you will continue to receive disability benefits.

Let us know if any person receiving benefits gets married. In some cases, Social Security payments stop after marriage. In other cases, the amount of the payments changes. This depends on the kind of benefits you receive and, sometimes, on whether the person you marry gets payments.

You should notify us if your marriage is annulled or you get a divorce. Divorce or annulment does not necessarily mean your Social Security payments will stop. If you are receiving payments based on your own work record, divorce or annulment of your marriage will not affect your payments. Also, if you are a spouse age 62 or older and you were married to the worker for 10 years or more, your payments will continue even if you divorce. But you should still contact us if your name has changed as a result of the divorce so that we can show your new name on your payments.

When a child is adopted, let us know the child's new name, the date of the adoption decree and the adopting parent's name and address.

If you are a wife, husband, widow or widower receiving benefits because you are caring for a child who is under age 16 or who was disabled before age 22, you should notify us right away if the child leaves your care. If you don't, it could result in a penalty which would cause an additional loss of benefits.

A temporary separation may not affect your benefits as long as you still have parental control over the child. You should tell us, though, if there is any change in where you or the child lives, or if you no longer have responsibility for the child. If the child returns to your care, you should tell us that also.

Payments to a child will stop when the child reaches age 18 unless he or she is unmarried and either disabled or a full-time student at an elementary or secondary school.

If a child age 18 or over is receiving payments as a student, we should be notified immediately if the student:

• drops out of school;

• changes schools;

• changes from full-time to part-time attendance;

• is expelled or suspended;

• is paid by his or her employer for attending school;

• marries; or

• begins working.

If a child whose payments were stopped at age 18 either becomes disabled before age 22 or is unmarried and enters elementary or secondary school on a full-time basis before age 19, notify us so we can resume sending payments to the child. Also, a disabled child who recovers from a disability can have payments started again if he or she becomes disabled again within 7 years.

If a person who receives Social Security benefits dies, a benefit is not payable for the month of death. For example, if a beneficiary died any time in June, the payment dated July 3 (which is payment for June) should be returned to the sender.

Some people who receive Social Security payments cannot manage their own funds. When this happens, the person who takes care of the beneficiary should let us know. We can arrange to send the payments to a relative or other person who can act on behalf of the beneficiary. We call this person a “representative payee.”

If you are deported or removed from the U.S. for certain reasons, your Social Security benefits are stopped and cannot be started again unless you are lawfully admitted to the U.S. for permanent residence.

Even if you are deported or removed, your dependents can receive benefits if they are U.S. citizens.

If your dependents are not U.S. citizens, they can still receive benefits if they stay in the U.S. for the entire month. But they cannot receive benefits for any month if they spend any part of it outside the U.S.

Payments to a child who is not a U.S. citizen could stop or start when certain changes occur. Let us know when the child's natural, adoptive or stepparent dies, marries or gets a divorce (or annulment), even if that person does not receive Social Security payments.

If, after 1985, you become entitled to a U.S. Social Security retirement or disability benefit and you also start to receive a monthly pension, such as a foreign social security or private pension, which is based in whole or in part on work not covered by U.S. Social Security, your U.S. Social Security benefit may be smaller. A different formula may be used to figure your U.S. Social Security benefit. For more information, ask at any U.S. Embassy or consulate or Social Security office for the factsheet, The Windfall Elimination Provision (Publication No. 05-10045).

Parts 7-A through 7-M explain what you need to report. When you report, you can contact us in person, by mail or by telephone. If you live in the British Virgin Islands, Canada or Samoa, you can send your report to the nearest U.S. Social Security office. If you live in Mexico, you can send your report to the nearest U.S. Social Security office, Embassy or consulate. If you live in the Philippines, you should send your report to:

Veterans Affairs Regional Office
SSA Division
1131 Roxas Boulevard
Manila, Philippines

In all other countries, you can report to the nearest U.S. Embassy or consulate.

If you find it easiest to contact us by mail, send your report by airmail to the following address:

Social Security Administration
P.O. Box 17769
Baltimore, Maryland 21235-7769
USA

Be sure to include your Social Security claim number. When you contact us, include all of the following information:

• name of the person or persons about whom the report is being made;

• what is being reported and the date it happened; and

• the claim number that appears on the person's Social Security check or on the letters or other correspondence we send you. (This is a nine-digit number— 000-00-0000—followed by a letter, or a letter and a number.)

It usually takes longer to deliver checks outside the U.S. because of the longer distances and extra handling needed. Delivery time varies from country to country and your check may not arrive the same day each month, so we ask you to be patient. But, if you do not receive your check after a reasonable waiting period, or if it is lost or stolen, contact the nearest U.S. Embassy or consulate or write directly to the Social Security Administration. Our address is:

Social Security Administration
P.O. Box 17769
Baltimore, Maryland 21235-7769
USA

We will replace your check as soon as possible. But please make every effort to keep your check safe, because it will take some time to replace a check while you are outside the country.

To determine if direct deposit (or other forms of electronic payment) is available in the country where you live—or to sign up for direct deposit—contact the nearest U.S. Embassy or consulate or U.S. Social Security office, or write to the Social Security Administration, P.O. Box 17769, Baltimore, Maryland 21235-7769, USA.

If you are a U.S. citizen or U.S. resident, up to 85 percent of the Social Security benefits you receive may be subject to the Federal income tax.

If you file a Federal income tax return as an “individual” and your combined income is $25,000 to $34,000, you may have to pay taxes on up to 50 percent of your Social Security benefits. “Combined income” means your adjusted gross income plus nontaxable interest plus one-half of your Social Security benefits. If your combined income is over $34,000, you may have to pay taxes on up to 85 percent of your Social Security benefits.

If you file a joint tax return, you may have to pay taxes on up to 50 percent of your Social Security benefits if you and your spouse have a combined income of $32,000 to $44,000. If your combined income is over $44,000, you may have to pay taxes on up to 85 percent of your Social Security benefits.

If you are a member of a couple and file a separate return, you probably will pay taxes on your benefits.

If you are not a U.S. citizen or a resident, Federal income taxes will be withheld from your benefits. The tax is 30 percent of 85 percent of your benefit amount.

It will be withheld from the benefits of all nonresident aliens, except those who reside in countries which have tax treaties with the U.S. that do not permit taxing of U.S. Social Security benefits (or provide for a lower tax rate). The U.S. has such treaties with Canada, Egypt, Germany, Ireland, Israel, Italy, Japan, Romania, Switzerland and the United Kingdom (defined as England, Scotland, Wales and Northern Ireland). In addition, the Social Security benefits paid to individuals who are citizens and residents of India are exempt from this tax to the extent that their benefits are based on Federal, State or local government employment.  (This list of countries may change from time to time.)

After the end of the year, you will receive a statement showing the amount of benefits you received during the year.

Many foreign governments tax U.S. Social Security benefits. U.S. residents planning to live in another country should contact that country's embassy in Washington, D.C., for information.

Keep in mind that Social Security benefits are calculated in U.S.dollars. The benefits are not increased or decreased because of changes in international exchange rates.

Medicare is a health insurance program for eligible people who are age 65 or over or disabled. Medicare protection consists of two parts: hospital insurance and medical insurance. The hospital insurance part of Medicare helps pay hospital bills and certain follow-up care after you leave the hospital. Medical insurance helps pay doctor bills and other medical services.

Medicare generally does not cover health services you get outside the U.S. The hospital insurance part of Medicare is available to you if you return to the U.S. No monthly premium is withheld from your benefit payment for this protection.

If you want the Medical insurance part of Medicare, you must enroll and there is a monthly premium which normally will be withheld from your payment. Since Medicare benefits are available only in the U.S., it may not be to your advantage to sign up and pay the premium for medical insurance if you will be out of the U.S. for a long period of time. But you should be aware that your premium, when you do sign up, will be 10 percent higher for each 12-month period you could have been enrolled but were not.

If you are already covered by medical insurance and wish to cancel it, you should notify us. Medical insurance—and premiums—will continue for one more month after the month you notify us that you wish to cancel it.

If you want more information than this booklet gives or if you have any questions about Social Security, ask at any U.S. Embassy or consulate or Social Security office, or write to us at the appropriate address shown under “How To Report" in Part 8 .