(The Social Security Benefits and U.S. Permanent Resident)
Once a U.S. citizen or permanent U.S. resident leaves the country, then their social security benefits are subject to change. U.S. citizens abroad will still receive regular benefits as long as they are eligible for them. There are a couple of countries that the United States cannot send payments to like North Korea and Cuba, but will commence payment once that citizen relocates to another country.
For permanent residents, only those who are citizens of select countries will continue to receive benefits as long as that resident lived/worked in the United States for at least 10 years or earned 40 credits. Some of these countries include but are not limited to China, India, Taiwan, etc. All others will stop receiving benefits 6 months after departure from the United States, excluding those who meet certain exceptions. Family members of permanent residents who lived and worked in the United States for at least 10 years and earned a minimum of 40 credits will also continue to receive benefits if they are citizens of select countries. For family members that leave the United States and survive the person whom benefits were based on, payments will continue so long as the family members lived in the United States for at least five years. In order to determine if you or your family members qualify for continued benefits upon departing the United States, please refer to this page.
As a permanent resident, up to 85% of your benefits are subject to taxation. If you are not a permanent resident or citizen and work in the United States, your benefits will also be taxed. If you work for an employer, 6.2% of your earnings are withheld. Your employer will deposit the withholdings, along with a matching contribution of 6.2% to the government for social security programs. In 2009, once your earnings reach $106,800, the employee tax and employer matching contribution stop. In addition, 1.45% of your earnings are withheld for Medicare. Your employer will match this amount with a 1.45% contribution; all of your earnings are subject to Medicare tax, regardless of how much you make. If you are self-employed, you pay 12.4% of your taxable income to social security until your earnings reach $106,800. You also pay 2.9% of your taxable income to Medicare on all of your earnings.
If you leave the U. S. in the future, you may be reimbursed for all of your paid social security taxes and Medicare taxes by following certain procedures. However, bear in mind, that there are also exceptions to social security taxation; certain foreign countries do not tax benefits earned through work in the United States or charge a reduced rate. For example, Indian nationals do not have to pay this tax so long as they receive benefits based on their work with the U.S. government at a local, state, or national level.
For both U.S. citizens and permanent residents, the future of social security is uncertain. It has been estimated that by the year 2016, the amount of benefits owed to the public will surpass taxation. At this current rate, all social security funds will be exhausted by 2037. In order to maintain this system, as it provides valuable benefits to both non-citizens and citizens alike, social security will have to undergo further reform to meet the needs of the ever-changing American demographic.
Additional information about social security can be found on the official website. Please refer to this page if you have further questions or concerns.
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