Social Security benefits as US expat in Australia - Medicare & tax consequences at FRA

Your understanding about no earnings limit at FRA is correct - your Australian income won't reduce your US Social Security benefits. On the tax front, yes, SS benefits will be part of your worldwide income for US tax purposes, but depending on your income level, only 50-85% of SS benefits are taxable. Also, the US-Australia tax treaty might help prevent double taxation. Regarding Medicare: this is where it gets tricky. You generally aren't required to enroll in Medicare if you live abroad. However, there can be late enrollment penalties if you ever move back to the US and want Medicare coverage later. The standard Part B premium for 2025 would be deducted from your SS payment if you enroll, even though you can't use Medicare services in Australia. Since you have no plans to return to the US, many expats in your situation choose not to enroll in Medicare Part B to avoid paying premiums for coverage they can't use. There's no penalty while you reside outside the US, but the penalty clock would start if you return.

My mom's in kinda the same boat but in Canada. She just turned 67 and started getting SS payments but didnt sign up for medicare since she has Canadian healthcare. No problems so far! SS deposits hit her Canadian bank account every month. She said the application online was pretty straightforward. But you gotta deal with the tax stuff - she files US taxes every year even tho she hasnt lived there since the 1980s. US citizenship = US tax filing forever lol

I'm in a similar situation but in New Zealand. Been here 25 years. When applying for my Social Security, I had to complete the form SSA-21 (Supplement to Claim of Person Outside the United States) along with the regular application. For Medicare, I spoke with the Federal Benefits Unit at the US Embassy who confirmed I could decline Part B without penalty while living overseas. One IMPORTANT thing to know - the Social Security Administration will periodically send you a questionnaire (Form SSA-7162) to verify you're still alive and eligible. Make sure to return this promptly or they'll suspend your payments! Also, be aware that some US banks make it difficult for Americans abroad to maintain accounts. I recommend setting up direct deposit to your Australian bank, but you'll need to provide international wire information and might lose a bit on the currency conversion.

The TAXES are what'll get ya! I've been collecting SS in Portugal for 3 years now. Even though I'm outside the US, I still have to file BOTH US federal taxes AND the Foreign Bank Account Report (FBAR) if you have over $10k total in foreign accounts. The Foreign Earned Income Exclusion DOESN'T apply to Social Security income - it's only for wages. So you WILL owe US taxes on 85% of your SS benefits if your income is above certain thresholds. Some people get surprised by this! I STRUGGLE every year with this stuff! The US and Australia have a totalization agreement for Social Security, but the tax stuff is still complicated!

I worked at a US/international tax firm for years, and your situation is actually quite common. Here's what you need to know: 1) You're correct about no earnings test at FRA - your Australian income won't affect your SS benefit amount 2) For US taxes, you'll need to report your SS benefits on your US tax return. The US-Australia tax treaty (Article 18) addresses this, but generally, up to 85% of your benefits may be taxable depending on your "combined income" 3) For Medicare: Part A (hospital insurance) is premium-free if you qualify for SS benefits. Part B (medical insurance) requires a monthly premium that would be deducted from your SS payment Since you permanently reside in Australia with no plans to return to the US, you can decline Part B without penalty (your "premium-free Part A" special enrollment period doesn't start until you'd return to the US) When applying for benefits, you'll need to complete: - Regular retirement application (can be done online) - Form SSA-21 (Supplement for Persons Outside the US) - Likely a Medicare opt-out form I'd recommend contacting the Federal Benefits Unit at the US Embassy in Australia. They're specifically trained to handle expatriate Social Security cases and can guide you through the process.

when my uncle tried to do this SS from Thailand the wait times to talk to someone at SSA were INSANE because of the time difference!!! he'd have to stay up till like 3am just to call during US business hours and then would get disconnected after waiting forever. super frustrating process for him

Don't forget about the Windfall Elimination Provision (WEP)!!! If you've worked in Australia and earned a pension there, your US Social Security might be REDUCED! The SSA doesn't advertise this much, but it's a NASTY surprise for many expats. Basically if you get a pension from work not covered by US Social Security (like Australian employment), they can reduce your US benefit by up to 50% of your foreign pension! ALSO!!! Don't forget to look into any potential Australian Social Security benefits you might be entitled to. The US-Australia Totalization Agreement lets periods of coverage in both countries be combined to meet eligibility requirements.

quick question - are u still a US citizen? i thought i read somewhere that if u became an australian citizen u had to give up us citizenship? or maybe thats outdated info

One thing I didn't see mentioned yet is the potential issue with bank transfers. Some US expats have problems with their Social Security payments because of FATCA requirements. Some foreign banks don't want to deal with the reporting requirements for US citizens. Do you have a US bank account you've maintained? If so, you might want to have your benefits deposited there and then transfer to Australia yourself. That's what I ended up doing because my local bank in New Zealand started giving me problems once they saw US government payments coming in regularly. Also, the SSA's online account system (my Social Security) can be problematic to access from overseas. They use US-based identity verification systems that sometimes can't verify foreign addresses or phone numbers. I'd recommend setting up your online access before you apply if possible.

I went through this exact process two years ago as a US-Australian dual citizen living in Melbourne for 28 years. Here's what worked for me: Applied online through the SSA website - surprisingly smooth process. The key forms you'll need are the standard retirement application plus SSA-21 (supplement for overseas residents). I declined Medicare Part B during the application process since I have no plans to return to the US and didn't want to pay premiums for unusable coverage. For banking, I kept my US account and have SS deposited there, then transfer to Australia monthly. The exchange rate fees are manageable and it avoids potential FATCA headaches with Australian banks receiving US government payments. Tax-wise, yes you'll report the SS benefits on your US return, but the US-Australia tax treaty helps prevent double taxation. I use a tax preparer who specializes in US expat returns - worth the cost for peace of mind. One surprise: I did get hit by WEP (Windfall Elimination Provision) since I have an Australian superannuation pension. It reduced my SS benefit by about $400/month, but it was still worth claiming. The Federal Benefits Unit at the US Embassy in Sydney was incredibly helpful throughout the process. They know all the expat-specific issues and can walk you through everything. Definitely recommend contacting them before you apply. Feel free to ask if you have specific questions about any part of the process!

As someone who just went through this process last year as a dual citizen in Perth, I can confirm most of what's been shared here is spot-on. A couple additional points from my experience: The SSA-21 form is crucial - don't skip it! It covers things like your foreign address verification and ensures your payments won't get held up. I also had to provide proof of life documentation (birth certificate, passport) since I'd been out of the US system for so long. One thing that caught me off guard was the tax withholding. Even though you're overseas, if you don't specifically request otherwise, they may withhold federal taxes from your SS payments. Since I was already handling my US tax obligations through annual filing, I opted out of withholding to get the full payment amount. Also, be prepared for the currency conversion to fluctuate your effective payment amount month to month if you're transferring from USD to AUD. I started timing my transfers based on exchange rates to maximize what I receive in Australian dollars. The whole process took about 3 months from application to first payment in my case. The Federal Benefits Unit in Perth was also very helpful - they even have a specific day each month for Social Security appointments if you need in-person assistance.

I've been living in the UK for 15 years and will be hitting FRA in a couple of years, so this thread has been incredibly valuable! One thing I wanted to add that I learned from a US tax advisor - make sure you understand how your Australian superannuation will interact with both US and Australian tax systems when you start drawing from it. Since Australia treats super withdrawals as tax-free after age 60, but the US may tax them as regular income, you could end up with some complex tax planning situations. The timing of when you start your super versus when you start Social Security could impact your overall tax burden in both countries. Also, has anyone dealt with the situation where SSA asks for an "Earnings Record" from the Australian Taxation Office? I've heard they sometimes request this to verify foreign earnings for WEP calculations, but I'm not sure how cooperative the ATO is with these requests. The Medicare discussion has been really helpful too - I was leaning toward enrolling just to be "safe" but after reading everyone's experiences, it seems like declining Part B while overseas is the smarter financial move.

I've been following this thread closely as I'm in a very similar situation - US citizen living in Sydney for 30+ years and turning 67 next year. The level of detail and real-world experience shared here is incredibly valuable! One aspect I haven't seen mentioned yet is the importance of keeping your SSA records updated with your current foreign address. I learned this the hard way when a friend had her payments suspended because SSA couldn't reach her after she moved apartments in Brisbane and forgot to update her address with them. Also, for those worried about the application complexity - I just completed my application last month and the online process was surprisingly straightforward. The SSA-21 supplement form auto-populates most fields based on your main application, so it's not as daunting as it initially appears. Regarding the WEP discussion - there's actually a WEP calculator on the SSA website that can give you a rough estimate of how much your benefit might be reduced. It requires some digging into your old US earnings records, but it's helpful for planning purposes. Has anyone had experience with SSA requesting additional documentation after the initial application? I'm wondering if being overseas for 30+ years might trigger additional verification requirements.