U.S. retirees in India were given a fresh reminder this week that they can keep receiving their Social Security benefits while living permanently abroad, so long as they earned enough work credits in covered employment in the United States and continue to follow residency rules set by the Social Security Administration (SSA). The guidance, updated as of late October 2025 and cited by VisaVerge.com, underscores that U.S. citizens who have earned at least 40 credits—roughly 10 years of work in jobs that pay into Social Security—remain eligible for monthly payments in India.
Green Card holders, however, face added risk if they live outside the United States long term, because losing permanent resident status or failing to meet specific conditions can disrupt benefits.
Key practical points
- Retirement abroad does not erase your U.S. work history.
- The monthly Social Security check can continue while you live in India if you meet SSA rules.
- U.S. citizens can receive payments in most countries, including India, but must keep records current and observe any verification or visitation requirements tied to payments abroad.
Officials detail country-by-country payment rules and interruptions on the SSA’s website. That page explains how the agency confirms continued eligibility once a beneficiary moves overseas and is the starting point for anyone planning a permanent move to India and wanting to keep benefits flowing.
Beneficiaries are urged to review the SSA’s country guidance and report changes in address, marital status, or citizenship promptly.
For authoritative guidance, beneficiaries can consult the SSA’s resource on international payments at SSA payments outside the United States.
Taxes: dual obligations and thresholds
Tax treatment is the second, equally weighty part of the story.
- U.S. Social Security benefits may be taxable in the United States depending on your combined income (which includes both U.S. and foreign sources).
- If combined income exceeds certain thresholds, up to 85% of your benefit can be taxable on your U.S. federal return.
- In India, tax residents must report global income, and Social Security payments generally fall under “Income from Other Sources.” This means they may be taxed in India as well.
Because there is no specific bilateral treaty clause that exempts U.S. Social Security from tax in India, retirees could face tax in one or both countries. The U.S. Foreign Tax Credit often helps reduce double taxation.
Filing mechanics — what to file where
- U.S. citizens must report Social Security income on the annual federal tax return using Form 1040 regardless of where they live. The IRS posts the form and instructions online: About Form 1040.
- In India, tax residents who report foreign income generally use ITR‑2 and must meet usual filing deadlines (typically July 31 unless extended).
Practical filing tips:
- Report the Social Security income on U.S. Form 1040 and use the IRS formulas to determine the taxable portion.
- Report the same income on your Indian return under Income from Other Sources if you are an Indian tax resident.
- Claim credits as allowed (for example, the U.S. Foreign Tax Credit) and keep proof of taxes paid.
Example scenario
Consider Ramesh:
- U.S. citizen of Indian origin who worked 12 years in the United States, earning the required 40 credits.
- Moved to India at age 65.
Outcome:
- He remains eligible for Social Security, and payments can continue while he lives in India.
- He reports the monthly amount as income on his U.S. Form 1040.
- If he is an Indian tax resident, he includes the same income on his Indian return under Income from Other Sources.
- If India taxes that income, he can generally use the Foreign Tax Credit on his U.S. return to offset U.S. tax, subject to U.S. rules.
Green Card holders — extra caution
- The benefit is tied to the worker’s earnings record, but payments to a former permanent resident living abroad can stop if the individual loses status or does not comply with SSA international payment rules.
- Long-term residents planning to retire in India should review immigration and benefit plans together before departing.
- SSA’s country-specific rules and general residency rules are the best guide to avoid unwanted interruptions.
Timing and retirement age considerations
- Full retirement age (currently 67 for people born in 1960 or later) still determines when you can claim your full benefit amount.
- Claiming earlier reduces your monthly check permanently; claiming later increases it up to age 70.
- Timing rules are unchanged by a move to India, but practical effects (currency swings, local inflation, cost of living) can alter the real value of benefits.
- Common practice: keep a U.S. bank account for direct deposit and transfer funds as needed, keeping careful records for both tax systems.
No U.S.–India totalization agreement — implications
- As of late 2025, no totalization agreement exists between the United States and India.
- Without such an agreement:
- Long-term workers can end up contributing separately to both countries’ systems.
- There is no mechanism to combine coverage periods or avoid double contributions.
- Shorter postings might get administrative relief, but long-term assignments usually mean parallel systems and parallel contributions.
VisaVerge.com reports that discussions surface regularly, but there has been no final deal to date. This leaves many professionals without the safety net bilateral agreements offer elsewhere.
Practical fallout for planning
- Without a totalization agreement, a U.S. worker posted to India may still pay into U.S. Social Security while also facing Indian retirement program requirements.
- For retirees, this can mean fragmented pensions and more paperwork later.
- Administrative and tax compliance also stretches beyond income tax: FBAR and FATCA reporting can apply if account values cross thresholds, even if the accounts themselves are not taxable that year.
Compliance checklist and best practices
- Track income carefully and keep records for both countries.
- Maintain a reliable U.S. mailing address or contact the SSA can reach if needed.
- Respond promptly to any SSA requests for proof of life or residency.
- Keep copies of award letters and annual statements.
- Confirm payment continuation before leaving the United States.
- Consult tax and immigration advisors as needed for complex situations.
The connecting thread is simple: track the income, keep addresses current, and respond quickly to SSA requests. These steps can prevent payment suspensions that might take months to fix from overseas.
Bottom line
- For U.S. citizens: you can live in India and keep your Social Security benefits if you earned 40 credits and follow SSA rules.
- For Green Card holders: long absences and loss of status can affect benefits, so plan carefully.
- For everyone: taxes remain a two-country task until the U.S. and India provide clearer coordination.
As policy talks continue, retirees and their families will keep balancing paperwork with personal priorities—showing that cross-border retirement is as much about preparation as it is about place.
This Article in a Nutshell
U.S. citizens who accumulated 40 Social Security credits can receive benefits while living in India if they follow SSA residency rules and respond to verification requests. Green Card holders risk benefit interruptions if they lose permanent residency or fail to meet SSA conditions. Taxes remain complex: benefits may be taxed in the U.S. (up to 85%) and in India for tax residents. With no U.S.–India totalization agreement as of late 2025, retirees should keep records, maintain U.S. contact details, and consult tax and immigration advisors.
