Contact UsI am an American citizen living in Italy. I draw Social Security benefits. My Italian accountant has just told me that Italy has changed the rules and will now tax these benefits. I have never worked in Italy, only in the US. Is he correct?
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Chuck Heyde, CPA, CGMA
Unfortunately, I think your Italian tax adviser is correct. According to the US - Italy tax treaty of 1999:
ARTICLE 18
Pensions, Etc.
2. Payments made by a Contracting State {i.e. the US} under provisions of the social security or similar legislation of that State {i.e. the US} to a resident of the other Contracting State {i.e. Italy} shall be taxable only in the other State {i.e. Italy} .
Sorry.
Chuck Heyde
www.GEMMS.us
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609 weeks ago
ARTICLE 18
Pensions, Etc.
2. Payments made by a Contracting State {i.e. the US} under provisions of the social security or similar legislation of that State {i.e. the US} to a resident of the other Contracting State {i.e. Italy} shall be taxable only in the other State {i.e. Italy} .
Sorry.
Chuck Heyde
www.GEMMS.us
Claudio Leuzzi
There is a new agreement of 2009, social security benefits are taxable only in one country (USA or ITALY). If the benefits have been taxed in the U.S. and in ITALY, you can request a refund.
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596 weeks ago