Social Security for NRIs becomes a pressing question at the time you've built your career in the United States but plan to return to India or live abroad. The good news: most U.S. citizens can receive Social Security benefits while visiting or living outside the U.S., provided you've earned the required work credits. But understanding everything in eligibility requirements and taxation rules is key to maximize your retirement income.
This piece covers what you need to know about social security benefits for NRI. You'll learn how to collect social security and live in another country, eligibility criteria for social security for non residents, and how to calculate your benefits. We'll also walk through taxation under both U.S. law and India's tax system. You'll discover practical strategies to claim and manage your social security benefits outside US while minimizing your tax burden.
Understanding US Social Security: Basics and Eligibility for NRIs
What is US Social Security and how it works
Social Security is a government-funded income program for American workers during retirement, disability, or death. The system runs on a pay-as-you-go basis where current workers and employers contribute taxes that fund benefits for retirees, disabled individuals, and survivors. You contribute 6.2 percent of your pay at the time you work in the U.S., and your employer matches this amount. Self-employed individuals pay the full 12.4 percent themselves.
Work credits and eligibility requirements
You earn Social Security credits based on your annual earnings. You receive one credit for every $1,890 earned in 2026, with a maximum of four credits per year. This means you need $7,560 in annual earnings to earn the maximum four credits for that year.
You need 40 credits total to qualify for retirement benefits, which requires 10 years of work. These credits remain on your record permanently, even if you change jobs or experience periods without earnings. Disability benefits have different requirements that depend on your age at the time disability begins. You need six credits earned within three years before age 24. You need credits for half the time between age 21 and your disability start date if you're between ages 24 and 31. You need at least 20 credits within the 10 years before disability if you're 31 or older.
Age requirements to claim benefits
You can start retirement benefits as early as age 62, but your payments will be reduced permanently. Full retirement age varies by birth year. Your full retirement age is 67 if you were born in 1960 or later. Taking benefits at age 62 instead of 67 results in a 30 percent reduction in monthly payments. Delaying benefits past full retirement age increases your monthly amount by 8 percent per year until age 70.
Residency status considerations for non-residents
Non-citizens face stricter rules. Benefit payments stop after six consecutive calendar months outside the United States. Exceptions exist for citizens of countries with social security agreements or totalization agreements with the U.S.. You must return and remain lawfully present for an entire calendar month to restart benefits after stoppage.
Spousal and survivor eligibility for NRIs
Your spouse may receive up to 50 percent of your full retirement benefit at their full retirement age. Both spouses must be at least 62, unless caring for children under 16 or with disabilities. The surviving spouse can claim survivor benefits as early as age 60 (or age 50 if disabled) and must have been married at least nine months.
Types of Social Security Benefits
Retirement benefits for NRIs
Social Security payments are the foundations of retirement benefits. Your monthly amount depends on your earnings history and claiming age. The program calculates benefits using your 35 highest-earning years. Missing years count as zero earnings. Your calculation in 2026 includes only income up to $184,500.
Disability benefits
Social Security Disability Insurance (SSDI) provides monthly payments if a medical condition prevents you from working for at least 12 consecutive months. You must meet the 20/40 Rule: 40 total credits with 20 earned in the last 10 years before disability begins. Substantial gainful activity in 2026 is $1,690 monthly ($2,830 if blind). Benefits start after a five-month waiting period. Disability benefits convert to retirement benefits at the same amount when you reach full retirement age.
Survivor and spousal benefits
Surviving spouses can claim benefits as early as age 60, or age 50 if disabled, with marriages lasting at least nine months. Survivors receive between 71% and 100% of the deceased worker's benefit depending on claiming age. A one-time lump sum death payment of $255 is available. Spousal benefits equal up to 50% of your full retirement amount. Survivors can receive the full 100%.
How your benefits are calculated (PIA, earnings record)
Your Primary Insurance Amount (PIA) determines your full retirement benefit. The calculation applies specific percentages to your Average Indexed Monthly Earnings (AIME). The 2026 formula uses 90% of the first $1,286, plus 32% of earnings between $1,286 and $7,749, plus 15% of amounts over $7,749.
Full retirement age vs early or late retirement
Claiming at 62 instead of 67 reduces benefits by 30% on a permanent basis. Delaying past full retirement age adds 8% each year until age 70. Someone filing at 70 in 2026 receives 129.3% of their full benefit.
Cost-of-living adjustments (COLA)
Benefits increase each year based on inflation. The 2026 COLA is 2.8% and raises the average retirement benefit by about $56 monthly.
Claiming and Receiving Social Security Benefits Outside the US
At what time and how NRIs can apply for benefits
You can apply online for Social Security benefits up to four months before you want payments to start, whatever your location. NRIs living abroad have two application routes: through U.S. embassies or consulates with trained Federal Benefits Units (FBU), or by contacting the Social Security Administration's Office of Earnings International Operations. Canadian residents receive services through domestic border offices rather than embassies.
Required documentation for NRI applicants
Your application requires proof of age (birth certificate or passport), proof of U.S. citizenship or lawful alien status, and W-2 forms or self-employment tax returns for the most recent year. You'll also need military discharge papers if you served and banking information for direct deposit.
Can you collect Social Security and live in another country
U.S. citizens can receive payments while living abroad indefinitely. But noncitizens face restrictions. The SSA stops payments after six consecutive calendar months outside the United States for non-citizens who don't meet specific exceptions. Payments cannot be sent to Cuba or North Korea, and restrictions apply to Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.
Direct deposit options for foreign bank accounts
Direct deposit works for financial institutions in any country with an international direct deposit agreement with the U.S.. India appears on the list of countries that support direct deposit.
Managing your benefits from abroad
Create a my Social Security account using ID.me credentials to check earnings, view benefit statements, and access tax forms without needing a U.S. mailing address. The SSA sends questionnaires every one to two years to verify your continued eligibility.
Taxation of Social Security Benefits for NRIs
How Social Security is taxed under US law
U.S. residents pay federal income tax once their combined income exceeds specific thresholds. Combined income equals your adjusted gross income plus nontaxable interest plus half your Social Security benefits. Part of your benefits becomes taxable once this total exceeds $25,000 for individual filers or $32,000 for joint filers. Singles with income between $25,000 and $34,000 (or joint filers between $32,000 and $44,000) may see up to 50% of benefits taxed. The taxable portion rises to 85% above $34,000 for singles or $44,000 for joint filers.
Taxation in India for residents and ordinarily residents
Indian residents receiving U.S. Social Security must understand cross-border tax implications. The DTAA provides specific relief for Social Security payments, though India taxes worldwide income for residents.
Double Taxation Avoidance Agreement (DTAA) benefits
Article 20(2) of the U.S.-India tax treaty states that Social Security benefits paid by one country to a resident of the other shall be taxable only in the source country. Only the U.S. can tax this income since the U.S. government pays your Social Security. This provision exempts your benefits from Indian taxation and prevents double taxation.
Withholding rates for non-US citizens
The SSA withholds 30% tax from 85% of your benefits if the IRS views you as a nonresident alien. This creates an effective rate of 25.5%. You may request voluntary withholding at 7%, 10%, 12%, or 22% of your monthly payment.
Reporting Social Security income in tax returns
You receive Form SSA-1099 (for U.S. persons) or Form SSA-1042S (for nonresident aliens) each January. These forms show your total benefits and withheld taxes. Use this form during your federal tax return filing.
Planning strategies to minimize tax burden
Roth IRA conversions provide tax-free withdrawals that don't increase your provisional income. Qualified charitable distributions from IRAs satisfy required minimum distributions and exclude amounts from income. Health Savings Account withdrawals for medical expenses remain tax-free and don't count toward provisional income.
Conclusion
Social Security benefits remain available for you as an NRI if you meet the work credit requirements and understand the residency rules. The key to maximizing your retirement income lies in strategic planning. You need to time your benefit claims and understand DTAA provisions that prevent double taxation while coordinating Social Security with other retirement accounts.
Cross-border retirement planning requires careful thought about both U.S. and Indian tax implications. Consult a qualified tax advisor or financial planner who specializes in NRI finances to create an individual-specific strategy that protects your benefits and minimizes your overall tax burden.
Frequently Asked Questions
Can non-U.S. citizens receive Social Security benefits while living in India?
Yes, non-U.S. citizens can receive Social Security benefits in India if they have earned at least 40 work credits (typically 10 years of work) in the United States. You don't need to be a U.S. citizen or green card holder to qualify. However, benefit payments may stop after six consecutive months outside the U.S. unless you meet specific exceptions under international agreements.
How much tax will be withheld from my Social Security benefits as a non-resident?
If the IRS considers you a nonresident alien, the Social Security Administration withholds 30% tax from 85% of your benefits, resulting in an effective withholding rate of 25.5%. Alternatively, you can request voluntary withholding at lower rates of 7%, 10%, 12%, or 22% of your monthly payment.
Will I have to pay taxes on Social Security benefits in both the U.S. and India?
No, you won't face double taxation. Under Article 20(2) of the U.S.-India Double Taxation Avoidance Agreement (DTAA), Social Security benefits are taxable only in the source country - the United States. This means your Social Security income is exempt from Indian taxation, preventing you from being taxed twice on the same income.
At what age should I start claiming Social Security benefits to maximize my payments?
You can claim benefits as early as age 62, but this results in a permanent 30% reduction if your full retirement age is 67. Waiting until your full retirement age (67 for those born in 1960 or later) gives you 100% of your benefit. Delaying benefits until age 70 increases your monthly payment by 8% per year, resulting in payments that are 129.3% of your full benefit amount.
About the Author
By Prakash
CEO & Founder of InvestMates
Prakash is the CEO & Founder of InvestMates, a digital wealth management platform built for the global Indian community. With leadership experience at Microsoft, HCL, and Accenture across multiple countries, he witnessed firsthand challenges of managing cross-border wealth. Drawing from his expertise in engineering, product management, and business leadership, Prakash founded InvestMates to democratize financial planning and make professional wealth management accessible, affordable, and transparent for every global Indian.
