Earning Credits From Work Outside The United States

The United states has agreements with other countries to allow that work overseas may help someone qualify for benefits if it was covered under a foreign Social Security system. Below is an explanation of how those agreements work. To discover the different countries the United States has these agreements with click here.

If you are among the growing number of Americans who spend part of their career working outside the United States, you may wonder what effect this will have on your Social Security taxes and benefits. Fortunately, the United States has concluded Social Security agreements with a number of other countries that help you avoid double taxation while working abroad and also help protect your future benefit rights. Your work overseas may help you to qualify for U.S. benefits if it was covered under a foreign Social Security system.

One of the main purposes of the international 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. Under the agreement, we can count your work credits in the other country if this will help you qualify for U.S. benefits. However, if you already have enough credit under U.S. Social Security to qualify for a benefit, we will not count your credits in the other country.

If Social Security has to count your foreign work credits, you will receive a partial U.S. benefit that is related to the length of time you worked under U.S. Social Security. Although Social Security may count your work credits in the other country, your credits are not actually transferred from that country to the United States. They remain on your record in the other country. It is therefore possible for you to qualify for a separate benefit payment from both countries.