Social Security Agreement
The US has social security agreements with many of its tax treaty partners. Under these agreements, many people who work or have worked for both countries can receive credit for work performed in both countries under the social security system of one country. In addition, these agreements help to avoid paying social security taxes to both countries.Publications on Social Security Agreements, often referred to as "Totalization" Agreements, can be obtained from your local Social Security representative at your Embassy or Consulate General.
Copies of International Agreements between the U.S. and seventeen countries can be obtained from the website: www.ssa.gov/international
Taxability of U.S./Italian Social Security For Residents in Italy
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U.S. Social Security
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Italian Social Security
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Italian Tax Return
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U.S. Tax Return |
U.S. Tax Return
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| U.S. CITIZEN /RESIDENT |
Reportable | Reportable usually not taxable if under certain limits. (If taxed in U.S. may take a tax credit for Italian taxes on U.S. return.) |
Witheld at source no filing requirement if no other source of income |
Reportable use foreign tax credit (form 1116) if paid tax to Italy |
| ITALIAN CITIZEN | Reportable | Not reportable Exempt under U.S. Italian Tax treaty |
Witheld at source no filing requirement if no other source of income |
N/A |
| DUAL CITIZEN | Reportable | Reportable but not taxable under U.S. Italian Tax treaty (savings clause does not apply.) Must make a statement on the return. |
Witheld at source no filing requirement if no other source of income |
Reportable but not taxable under U.S. Italian Tax treaty. Must make a statement on the return. |