Should you become a U.S. citizen before retiring in China? Keeping a green card, giving it up while retaining Chinese citizenship, or naturalizing as a U.S. citizen before moving back each involves different tradeoffs. Social Security, U.S. tax obligations, long-term residence in China, Medicare, and the ability to return to the United States should all be considered together.
Tag Archives: U.S. Taxes
Why Could Your Social Security Suddenly Drop by 25.5% After Giving Up a Green Card?
Giving up a U.S. green card does not mean losing Social Security, but it can change a retiree’s U.S. tax status. If the retiree becomes a nonresident alien subject to the applicable withholding rules and no treaty exemption applies, the United States withholds tax at 30% on 85% of Social Security benefits—effectively 25.5% of the gross benefit.
