Social Security Agreement with Mexico

Social Security Agreement with Mexico: What You Need to Know

The United States has signed Social Security agreements with several countries around the world, including Mexico. These agreements, also called Totalization agreements, are designed to prevent double taxation and allow workers to move between countries without losing their Social Security benefits.

If you are a U.S. citizen or a Mexican citizen working in the other country, here is what you need to know about the Social Security agreement between the United States and Mexico.

Who is Covered?

The agreement covers U.S. and Mexican citizens who have worked or are currently working in either country. It also covers individuals who are self-employed or who work for companies in both countries.

How Does It Work?

Under the agreement, workers are only required to pay Social Security taxes in the country where they are currently working. This means that if you are a U.S. citizen working in Mexico, you will only pay Social Security taxes in Mexico, and your employer will not have to pay Social Security taxes in the United States.

Likewise, if you are a Mexican citizen working in the United States, you will only pay Social Security taxes in the U.S., and your employer will not have to pay Social Security taxes in Mexico.

In addition, the agreement allows workers to combine their Social Security credits earned in both countries to qualify for benefits. This means that if you have worked in both the U.S. and Mexico, you may be eligible for Social Security benefits from both countries.

How to Apply for Benefits

To apply for Social Security benefits under the agreement, you must contact the Social Security Administration in the country where you live or where you last worked. If you are a U.S. citizen living in Mexico, for example, you would contact the U.S. Social Security Administration.

You should apply for benefits as early as possible, as the process can take several months to complete. You will need to provide proof of your work history in both countries to qualify for benefits.

Conclusion

The Social Security agreement between the United States and Mexico is an important benefit for workers who move between the two countries. By allowing workers to pay Social Security taxes in only one country and combining their work credits, the agreement ensures that individuals receive the benefits they are entitled to without double taxation.

If you are a U.S. or Mexican citizen working in the other country, be sure to familiarize yourself with the details of the Social Security agreement and apply for benefits as early as possible to ensure you receive the benefits you deserve.