Publication 54 - Tax Guide For U.s. Citizens And Resident Aliens Abord - 2011 Page 10
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44American vessel or aircraft. An American
Australia
Greece
Norway
withheld if the refund can be processed during
Austria
Ireland
Poland
the same calendar year in which the tax was
vessel is any vessel documented or numbered
Belgium
Italy
Portugal
withheld. If the SSA cannot refund the tax with-
under the laws of the United States and any
Canada
Japan
Spain
held, you must file a Form 1040 or 1040A with
other vessel whose crew is employed solely by
Chile
Korea,
Sweden
the Internal Revenue Service Center at the ad-
one or more U.S. citizens, residents, or corpora-
Czech
South
Switzerland
dress listed under Where To File to determine if
tions. An American aircraft is an aircraft regis-
Republic
Luxembourg
United
you are entitled to a refund. The following infor-
tered under the laws of the United States.
Denmark
Netherlands
Kingdom
mation must be submitted with your Form 1040
Finland
American employer. An American employer
or Form 1040A.
France
includes any of the following.
•
A copy of Form SSA-1042S, Social Secur-
Germany
•
The U.S. Government or any of its instru-
ity Benefit Statement.
mentalities.
•
A copy of your “green card.”
Under these agreements, dual coverage and
•
An individual who is a resident of the
dual contributions (taxes) for the same work are
•
A signed declaration that includes the fol-
United States.
eliminated. The agreements generally make
lowing statements.
•
sure that you pay social security taxes to only
A partnership of which at least two-thirds
one country.
of the partners are U.S. residents.
“I am a U.S. lawful permanent resident
Generally, under these agreements, you will
and my green card has been neither re-
•
A trust of which all the trustees are U.S.
only be subject to social security taxes in the
voked nor administratively or judicially de-
residents.
country where you are working. However, if you
termined to have been abandoned. I am
•
are temporarily sent to work in a foreign country
A corporation organized under the laws of
filing a U.S. income tax return for the tax-
and your pay would otherwise be subject to
the United States, any U.S. state, or the
able year as a resident alien reporting all
social security taxes in both the United States
District of Columbia, Puerto Rico, the U.S.
of my worldwide income. I have not
and that country, you generally can remain cov-
Virgin Islands, Guam, or American Sa-
claimed benefits for the taxable year under
ered only by U.S. social security. You can get
moa.
an income tax treaty as a nonresident
more information on any specific agreement by
alien.”
contacting:
An American employer also includes any for-
eign person with an employee who is performing
Social Security Administration
services in connection with a contract between
Office of International Programs
the U.S. government (or any instrumentality
Social Security
P.O. Box 17741
thereof) and a member of a domestically con-
Baltimore, MD 21235-7741
trolled group of entities which includes such for-
and Medicare Taxes
eign person.
If you have access to the Internet, you can get
more information at:
Social security and Medicare taxes may apply to
Foreign affiliate. A foreign affiliate of an
American employer is any foreign entity in which
wages paid to an employee regardless of where
the American employer has at least a 10% inter-
the services are performed.
est, directly or through one or more entities. For
General Information
a corporation, the 10% interest must be in its
Covered by U.S. only. If your pay in a foreign
voting stock. For any other entity, the 10% inter-
country is subject only to U.S. social security tax
est must be in its profits.
In general, U.S. social security and Medicare
and is exempt from foreign social security tax,
Form 2032, Contract Coverage Under Title II
taxes do not apply to wages for services you
your employer should get a certificate of cover-
of the Social Security Act, is used by American
perform as an employee outside the United
age from the Office of International Programs.
employers to extend social security coverage to
States unless one of the following exceptions
U.S. citizens and resident aliens working abroad
Covered by foreign country only. If you are
applies.
for foreign affiliates of American employers.
permanently working in a foreign country with
1. You perform the services on or in connec-
Once you enter into an agreement, coverage
which the United States has a social security
tion with an American vessel or aircraft
cannot be terminated.
agreement and, under the agreement, your pay
(defined later) and either:
is exempt from U.S. social security tax, you or
Excludable meals and lodging. Social se-
your employer should get a statement from the
a. You entered into your employment con-
curity tax does not apply to the value of meals
authorized official or agency of the foreign coun-
tract within the United States, or
and lodging provided to you for the convenience
try verifying that your pay is subject to social
of your employer if it is reasonable to believe
security coverage in that country.
b. The vessel or aircraft touches at a U.S.
that you will be able to exclude the value from
If the authorities of the foreign country will not
port while you are employed on it.
your income.
issue such a statement, either you or your em-
ployer should get a statement from the U.S.
2. You are working in one of the countries
Bilateral Social Security
Social Security Administration, Office of Interna-
with which the United States has entered
(Totalization) Agreements
tional Programs, at the address listed earlier.
into a bilateral social security agreement
The statement should indicate that your wages
(discussed later).
The United States has entered into agreements
are not covered by the U.S. social security sys-
3. You are working for an American employer
with some foreign countries to coordinate social
tem.
(defined later).
security coverage and taxation of workers who
This statement should be kept by your em-
4. You are working for a foreign affiliate (de-
are employed in those countries. These agree-
ployer because it establishes that your pay is
fined later) of an American employer under
ments are commonly referred to as totalization
exempt from U.S. social security tax.
a voluntary agreement entered into be-
agreements and are in effect with the following
Only wages paid on or after the effective date
tween the American employer and the U.S.
of the totalization agreement can be exempt
countries.
Treasury Department.
from U.S. social security tax.
Chapter 2 Withholding Tax
Page 10
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