Example 1: Tax Due on Benefits Paid
A, a U.S. resident, files for retirement insurance benefits (RIB) in 4/00. His claim
is adjudicated in 6/00 with a 4/00 date of entitlement (DOE). In 8/00, SSA becomes
aware he left the U.S. in 5/00 (before his first payment was made) and established
residence in Sweden. The first payment from which SSA can withhold tax is the one
for 8/00 (dated 9/1/00).
An unpaid tax liability is posted for the tax due on the 4/00 - 7/00 benefits.
Example 2: Tax Due on Accrued Benefits
Same as Example 1, except A's claim is not adjudicated until after SSA receives notice
of his residence change. SSA withholds taxes from the accrued benefits paid to him
for the months from 4/00.