Social Security Survivor's Benefit Tax
Posted: Sun Jun 23, 2024 7:06 pm
Hi,
I recently heard that US social security survivor benefits may be heavily taxed on the death of the spouse. National Tax Board is assuming the surviving spouse will receive the benefit over their life expectancy and taxing on that amount.
For example, a 70 year old woman has a life expectancy of 19 years. If she receives $30,000 a year US social security survivor benefit, NTB will consider the 19x$30,000=$570,000 as inheritance, potentially making 30%+ of this due within ten months of the spouses death.
This article seems relevant. https://www.asahi.com/ajw/articles/14844606
Has anyone heard any update on this case or any others?
I recently heard that US social security survivor benefits may be heavily taxed on the death of the spouse. National Tax Board is assuming the surviving spouse will receive the benefit over their life expectancy and taxing on that amount.
For example, a 70 year old woman has a life expectancy of 19 years. If she receives $30,000 a year US social security survivor benefit, NTB will consider the 19x$30,000=$570,000 as inheritance, potentially making 30%+ of this due within ten months of the spouses death.
This article seems relevant. https://www.asahi.com/ajw/articles/14844606
Has anyone heard any update on this case or any others?
) the UK state pension doesn't have survivor benefits for foreign spouses unless they are also in the UK scheme).