Social Security rules changed meaningfully in 2025. Several rules that apply only to people living outside the United States did not change at all.
If you live abroad, or plan to, here is what I would want you to know.
What the repeal did
The Social Security Fairness Act was signed on January 5, 2025. It repealed two provisions outright:
- The Windfall Elimination Provision (WEP), which reduced benefits for people who also received a pension from work not covered by Social Security
- The Government Pension Offset (GPO), which reduced spousal and survivor benefits for people with such a pension
The change applies to benefits payable for months after December 2023. The Social Security Administration finished adjusting existing records in July 2025, after sending more than 3.1 million payments.
Why it matters now: if you decided when or whether to claim under the old rules, that decision was made against rules that no longer exist. It is worth revisiting.
What still applies when you live abroad
1. Totalization agreements
The U.S. has 30 totalization agreements in force. They do two things:
- Prevent paying into two systems at once for the same work, in most cases
- Let credits from the other country count toward qualifying for a U.S. benefit, though not toward the benefit amount
2. Proof of life
Beneficiaries abroad receive a questionnaire (form SSA-7162) every one or two years. If it is not returned, payments are suspended. Keep your mailing address current.
3. Non-citizen spouses and dependants
A U.S. citizen’s own benefit is not at risk here. A foreign-national spouse’s benefit can be:
- A non-citizen outside the U.S. for six full calendar months can lose payment from the seventh month, with many exceptions
- Non-citizen dependants and survivors may also need five years of U.S. residence
- Living in a totalization-agreement country is the most important exception to both
4. Where payments cannot be sent
Payments are prohibited to Cuba and North Korea and are restricted for several other countries.
5. The foreign work test
This one catches people. If you are under full retirement age and work abroad in a job not covered by U.S. Social Security, you lose a month’s benefit for each month you work more than 45 hours. Earnings do not matter. Roughly ten hours a week is enough.
The tax side
- Up to 85% of benefits can be taxable. The income thresholds ($25,000 and $34,000 single; $32,000 and $44,000 joint) are not indexed and have not changed.
- There is no “no tax on Social Security” rule. The 2025 legislation created a separate $6,000 deduction for people 65 and older, for 2025 through 2028, phasing out above $75,000 of modified AGI ($150,000 joint). It is based on age, not on receiving benefits.
- Treaties matter. IRS Publication 915 lists U.S. citizens resident in Canada, Egypt, Germany, Ireland, Israel, Italy, Romania and the United Kingdom as exempt from U.S. tax on their benefits. Portugal is not on that list. Two Americans with the same benefit can face different U.S. tax depending on where they retire.
The claiming decision
For someone born in 1964, full retirement age is 67.
- Claiming at 62 pays 70% of the full benefit
- Waiting past full retirement age adds 8% a year, up to age 70
Those percentages are fixed. How they fit your situation is not. That depends on your country’s treaty position, whether a non-citizen spouse’s benefit is exposed, whether you will work abroad, and how benefits interact with the rest of your income.
A short checklist
- Confirm whether WEP or GPO ever reduced your benefit, and whether the adjustment arrived
- Check whether your country has a totalization agreement and an income tax treaty that covers benefits
- If your spouse is not a U.S. citizen, review their benefit rules separately
- If you are under full retirement age, track hours worked abroad
- Keep the SSA updated on your address, so proof-of-life forms reach you
Important disclosures
Social Security and tax outcomes depend on your earnings record, citizenship, residence and treaty position. Confirm your figures with the Social Security Administration and a qualified tax professional.
Educational information only. This article is for general educational and informational purposes only. It is not personalized tax, legal, immigration, investment, financial planning, insurance, accounting or estate planning advice, and it cannot account for every reader’s citizenship, residence, domicile, tax status, objectives or jurisdiction. Consult appropriately qualified U.S. and local professionals before making decisions or taking action.
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A longer version with full sources appears on US Expat: U.S. Social Security Abroad After the WEP and GPO Repeal.