TN 11 (11-97)

GN 05010.500 Benefit Statements Involving Alien Withholding Tax

A. INTRODUCTION

1. General

The Form SSA-1042S (Social Security Benefit Statement) serves the same purpose as, and is similar to, the Form SSA-1099 (also named Social Security Benefit Statement). However, the SSA-1042S has additional entries to show the:

  • nonresident alien tax rate;

  • amount of nonresident alien tax withheld;

  • amount of nonresident alien tax refunded; and

  • net nonresident alien tax withheld.

The explanations of the form and the items on it provide information to the nonresident alien whose tax is a flat rate and is not related to age or other income.

2. Spanish-Language Forms

Original Spanish-language SSA-1042Ss are sent to beneficiaries in the following countries:

AndorraHonduras
ArgentinaMexico
BoliviaNicaragua
ChilePanama
ColombiaParaguay
Costa RicaPeru
Dominican RepublicSpain
EcuadorUruguay
El SalvadorVenezuela
Guatemala 

Subsequent statements (updated, replacement, etc.) are English-language forms.

B. POLICY

Each year, an SSA-1042S is sent to every Social Security beneficiary who:

  • had the nonresident alien tax withheld from his/her benefits during the year for which the statement is issued;

    EXCEPTION: A U.S. citizen beneficiary who had the nonresident alien tax withheld from his benefit, and had all the tax refunded to him in the statement year, receives an SSA-1099.

  • is an alien residing in a tax treaty country (as listed in GN 05010.010A.2.) at the time the annual statement is prepared and has an AWSC other than “3” (i.e., no withholding, resident alien);

  • is an alien residing outside the U.S., has an AWSC other than “3,” and did not receive any benefits during the statement year because they were withheld to recover an overpayment; or

  • is an alien residing outside the U.S., has an AWSC other than “3,” and did not receive any benefits but repaid benefits in the statement year.

U.S. citizens and residents (in or out of the U.S.) receive an SSA-1099.