Mexico is the second largest trading partner of the United States, already in force with Canada, the largest trading partner of the United States, and 19 other countries. An agreement would also fill gaps in benefit protection for U.S. workers who have worked in both countries, but not long enough in one or both countries to qualify for benefits. Tax payers must write in red at the top of forms 1040-X “French CSG/CRDS rights” and submit them in accordance with the instructions of these forms with the attached forms 1116. U.S. employers cannot claim refunds that have withheld a foreign tax credit for CSG/CRDS or who have paid it on behalf of their employees. A: The Social Security Totalization Agreement signed by the United States with Mexico in 2004 has not yet entered into force. It is still awaiting action from the President and Congress. This is the secret of the plan to provide Mexican citizens – including millions of people who worked illegally here – with U.S. Social Security benefits.
Elimination of the double taxation on social security that occurs when a worker from one country works in another country and has to pay social security taxes to both countries with the same income. As a result of existing totalization agreements, U.S. workers and employers are currently saving about $800 million a year in foreign taxes that they do not have to pay. In 2019, the United States and the French Republic recalled, through diplomatic communication, the agreement that the taxes of the French Confederation of Generalisee Contributions (CSG) and the Contribution to the Repayment of Sociate Debt (CRDS) are not social charges covered by the social security agreement between the two countries. As a result, the IRS will not challenge foreign tax credits for CSG and CRDS payments on the basis that the social security agreement applies to these taxes. Q: What happened to the U.S. agreement on totalizing social security with Mexico? Has TSCL learned anything from these Freedom of Information Act requests? Has this agreement already come into force? Since 2005, TSCL has requested the disclosure of documents relating to the agreement through several requests and appeals by the Freedom of Information Act (FOIA). As a result, the first public copy of the 2006 totalization agreement was published to TSCL, but there were no long-term estimates of the financial impact contained in the disclosed documents. Determined to know what the government usually accepts, TSCL filed more FOIA applications and another complaint. Recently, a new federal judge ruled that TSCL deserves more information. TSCL expects that additional documents will be published as soon as possible, unless the government appeals.