Benefits Taxation in the U.S.

US Citizens and Lawful Permanent Residents

If you are a U.S. citizen or U.S. resident, up to 85 percent of the Social Security benefits you receive may be subject to the federal income tax depending on your income. Please click here (PDF 429 KB) for more information.

Polish Citizens and Other Non-Resident Aliens

If you are not a U.S. citizen or a U.S. resident, federal income taxes will be withheld from your benefits (this is often referred to as an “alien taxation”). The tax is 30 percent of 85 percent of your benefit amount, which equals 25.5% of the payment amount.

It will be withheld from the benefits of all nonresident aliens, except those who reside in countries that have tax treaties with the United States that do not permit taxing of U.S. Social Security benefits (or provide for a lower tax rate). The United States has such treaties with Canada, Egypt, Germany, Ireland, Israel, Italy, Japan, Romania, Switzerland and the United Kingdom.

After the end of the year, you will receive a statement showing the amount of benefits you were paid during the year.

Benefits Taxation in Poland

In Poland U.S. benefits are treated as taxable income and are subject to a regular income tax (Polish Law Journal# 80, of September 10, 1991, section 350).

According to the Income Tax Convention (PDF 52 KB) on avoidance of double taxation and tax evasion signed by the U.S. and Poland on October 8, 1974, the amount withheld from benefits as federal income tax in the U.S. will be deducted from the amount of income tax due in Poland.

If your benefit is subject to the U.S. income tax you will need to provide evidence of the amount withheld as tax in the U.S. in order to avoid double taxation. U.S. citizens whose Social Security benefits were taxed in the U.S. have to submit a proof from IRS and the Non-resident Aliens whose benefits are subject to the “alien taxation” can either present the benefits award notice or a statement issued by the Federal Benefits Unit. To request such statement please follow the instructions here.