Us Totalization Agreement with India

The United States Totalization Agreement with India: What You Need to Know

For those unfamiliar with the term, a Totalization Agreement is an agreement between two countries regarding social security benefits for individuals who have worked in both countries. The United States has signed Totalization Agreements with around 30 countries, including India.

So, what does the Totalization Agreement with India entail? Here are the key points to keep in mind:

1. Who is eligible?

The agreement applies to individuals who have worked in both the United States and India, and who may be eligible for social security benefits from both countries. In order to receive benefits, you must have earned enough credits or contributions in each country to qualify for benefits according to that country`s laws.

2. How does it affect social security contributions?

Under the Totalization Agreement, individuals are only required to pay social security taxes to one country at a time. This means that if you are a U.S. citizen working in India, you would only need to pay social security taxes in India, not the United States. Conversely, if you are an Indian citizen working in the United States, you would only need to pay social security taxes in the United States, not India.

3. How does it affect social security benefits?

The Totalization Agreement also affects how social security benefits are calculated. In the absence of a Totalization Agreement, individuals who have worked in both countries could potentially be subject to a reduction in benefits due to the fact that they did not contribute enough to either country`s social security system. However, under the Totalization Agreement, the two countries will “totalize” the credits or contributions that the individual has earned in each country. This means that the individual`s social security benefits will be based on a combined total of their credits or contributions earned in both countries.

4. Are there any exceptions?

There are certain exceptions to the Totalization Agreement. For example, if you have earned enough credits or contributions in one country to receive benefits under that country`s laws, you may not be eligible for benefits under the other country`s laws. Additionally, there are certain types of U.S. social security benefits that are not included in the Totalization Agreement, such as Supplemental Security Income (SSI) and certain types of veterans benefits.

Overall, the Totalization Agreement with India is an important agreement for individuals who have worked in both countries and may be eligible for social security benefits from both. By “totalizing” credits or contributions, the agreement helps ensure that individuals are able to receive the benefits they have earned without being subject to a reduction due to the fact that they did not contribute enough to either country`s social security system.