Contact UsI moved to Israel in May 2013. I receive social security and a pension from Virginia. Social security is tax free by treaty between the US and Israel. What do I report as income for 2013 ?
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Manasa Nadig
Acc to Article 20 of the Tax Treaty- Israel generally taxes U.S. private pensions (such as IRA's, 401k's, corporate pensions, etc.) at the same rate that the pension would have been taxed had the taxpayer remained a resident of the U.S.
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521 weeks ago
According to the U.S.-Israel Income Tax Treaty Article 22, U.S. and State public pensions are taxed in the U.S. only.
Since you lived partly in the US & then moved to the Israel in May, the answer to the question -about what to report as income for 2013, may be quite complicated and involves a through check of whether or not you are considered an Israeli or U.S. tax resident. This includes reference to U.S. and Israeli tax law and the U.S.-Israeli Income Tax Treaty.
Also, you may have file a part year Virginia tax return.