Q & A August 7, 2005

Q & A 1.

Q&A 1.

Social Security Agreements Among Countries and Their Effect

Zheng Reader asks:

My daughter and son-in-law both have green cards. My son-in-law works in China for a Chinese company. My daughter is in U.S. as a housewife. Since 2001, HR Block prepared their annual tax returns. Because China does not issue W-2s, there was no Social Security benefits and Medicare withholdings. They filed tax returns but there was no social security credits. They asked the HR Block tax preparer how to resolve the problems but in vain. Do you know how they could pay social security benefits and Medicare withholdings when filing their taxes? Is there any individual tax method could allow taxpayers who receive only overseas income to withhold for social security and Medicare?

Dear reader:

Our office does not usually answer questions regarding social security. However, we did find some information listed below from Social Security Administration’s website www.ssa.gov which might help you understand your son-in-law’s social security credit issue.

To qualify for benefits under the U.S. Social Security program, a worker must have earned enough work credits, called quarters of coverage, to meet specified "insured status requirements." If he worked in other countries than China, your son-in-law’s work overseas might help him to qualify for U.S. benefits if it is covered under a foreign Social Security system.

The United States has Social Security agreements with a number of other countries. One of the main purposes of these agreements is to help people who have worked in both the United States and the other country, but who have not worked long enough in one country or the other to qualify for Social Security benefits.

However, the United States does not have a Social Security agreement with China at the present time.
As per our understanding from the website, China does not yet have national social security legislation but they might have provincial and city/county social insurance agencies and employers adapt central government guidelines to local conditions. Your son-in-law might be able to check with China’s provincial government for its social program so that he can receive benefits in the future from China. Please see also http://www.socialsecurity.gov/policy/docs/progdesc/ssptw/2004-2005/asia/china.html

Copyright © 2003 - 2005 Alan Lee, Esq.
The information provided here is of a general nature and may not apply to any particular set of facts or circumstances. It should not be construed as legal advice and does not constitute an engagement of the Law Office of Alan Lee or establish an attorney-client relationship.