# where to add foreign SS benefits & pension received? in 1040 or 2555



## Pitty (Apr 25, 2016)

Hi again and sorry for asking many questions today in the forum.

Well, i'm gonna use FEIE for my U.S taxes. but my question is:
Here in France CAF and CPAM which belong both to government, help families by paying them money for child care, parental leave of absence, etc.
For last tax year (2014) i was in Parental leave of absence. so i added CAF help for the whole year as my* Total wages, salaries, bonuses, commissions* (not as a SS benefits) and inserted it only in form *2555* (*Q19*). Was it right?

for this tax year, i read here https://www.taxact.com/tsupport/FAQDisplay.asp?Question=15181
So i should declare it either as 1-Foreign Pension and Annuity Distributions or 
2-As Foreign Employer Compensation and Pensions.

Am i right? if so in case (1), should i add this value in form 1040(Q16 a, b)?
in case (2), should i add this value in form 2555 (Q21, part d) which is about facilities furnished by employer?

Can't I add it directly to my income and put it in *2555* (*Q19*) ?

Any help is truely appreciated


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## Bevdeforges (Nov 16, 2007)

Actually, you probably don't need to declare it at all. IRS publication 525 on Taxable and Nontaxable Income says the following:


> *Welfare and Other Public Assistance Benefits*
> 
> Do not include in your income governmental benefit payments from a public welfare fund based upon need, such as payments due to blindness. Payments from a state fund for the victims of crime should not be included in the victims' incomes if they are in the nature of welfare payments. Do not deduct medical expenses that are reimbursed by such a fund. You must include in your income any welfare payments that are compensation for services or that are obtained fraudulently.


I think it's pretty safe to say that CAF and CPAM both fall under the heading of "public welfare fund" - not to mention that CPAM medical benefits are not considered "taxable income" for US tax purposes in any event.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

From your description, CAF and CPAM are not wages, salaries, etc. They do not belong in 1040 Line 7, nor in 2555 Line 19. They may belong elsewhere.


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## Pitty (Apr 25, 2016)

Thanks both of you

the links was this one :
https://www.taxact.com/tsupport/FAQDisplay.asp?Question=15181


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## Bevdeforges (Nov 16, 2007)

CAF and CPAM are not pensions - certainly not in the sense of the term as it is used by the IRS. These are "public welfare funds" in the US sense of the term.
Cheers,
Bev


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