Question
Looking for income tax clarification. I receive a teacher’s pension from the state of Arizona and social security. I keep finding conflicting info; are both of these taxed? I calculated the taxes as if they were and came up with an effective rate of 28% – does that sound right?
Answers
These are the answers of some Facebook group members:
”Teacher pension: nope. Social security: depends on who you ask”
”Your teacher’s pension will not be taxed in Spain, it is exempt per the tax treaty. Your social security may or may not be taxed, depending on the basis of the pension. If it was earned as a result of government employment, you may be able to argue that it is also a government pension and therefore tax exempt. Talk to a Spanish tax lawyer for their opinion”
”I believe they are both taxed. I cannot comment on the effective rate not knowing your total income”
Conclusion
In conclusion, according to Spainguru Facebook group members, taxation of a teacher’s pension from Arizona and social security can differ. The teacher’s pension might not be taxed, while social security’s taxation depends on factors like the nature of the pension and tax treaties.
The effective tax rate of 28% could vary based on individual circumstances and total income. Consulting a tax professional or Spanish tax lawyer can offer personalized guidance.
Read more: I plan to retire in Spain. Are pension, social security and cash taxable?
