Question

US and foreign countries prevent double social security and Medicare taxation of US

A. Treaty benefits
B. Tax treaty impact
C. Tax equalization plans
D. Totalization agreements

Answer 1

Totalization agreements can help prevent double social security and Medicare taxation for individuals working in multiple countries. Option D

Step-by-step explanation:

Double social security and Medicare taxation can be prevented through Totalization agreements. These agreements are bilateral agreements between countries that eliminate dual social security and Medicare taxation for individuals who work or have worked in both countries. By avoiding double taxation, individuals can avoid paying twice for the same benefits.

For example, if an individual works in the United States and another country that has a totalization agreement with the United States, they would only be required to pay social security and Medicare taxes in one country, not both.

Through these agreements, individuals can ensure that their social security and Medicare benefits are not adversely affected by having to pay taxes in multiple countries. Option D