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    skat's Avatar
    skat Posts: 1, Reputation: 1
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    #1

    Apr 13, 2015, 01:34 PM
    Foreign source social security benefits
    I was born in Denmark, but have been a US citizen since early l980's. I am now receiving partial social security benefits from Denmark, and have been told that I must report this as regular income to the IRS. However, danish tax people tell me that due to agreement with the US for the avoidance of double taxation, that I pay tax to Denmark on this amount, and NOT to the U.S.
    What shall I do? How do I file?
    (I'm being taxes in Denmark on this amount).
    Thanks, ATR
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Apr 13, 2015, 11:36 PM
    This si what the extract from IRS Pub 901 says:

    Pensions paid from the public funds of Denmark, its political subdivisions, or local authori-ties for services performed for Denmark are exempt from U.S. income tax unless the recipient is a resident and a national of the United States.

    You pay the taxes to Denmark, then submit Form 1116 to get a foreign tax credit for those Danish taxes on your U.S. tax return.
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