Hello, I'm a naturalized US citizen, currently retired and living in the US. I have been receiving Social Security benefits for the years worked in US for about 2 years now. I also worked in my country of origin for many years and receive the corresponding social security benefits from them over there, for the years worked (For information purposes, there is a dual nationality agreement between US and my country of origin).
I recently received a letter from the U.S. Social Security Administration saying that my US benefits would be reduced by 40%, based on the benefits received from my country. They also said that this would be a retroactive measure, and that I must return to them the amount "overpayed" to me for the last 2 years, according to their new calculations.
I paid all my payroll taxes here and all my payroll taxes over there, "to each his own" so to speak, based on years worked, income earned, and their correspondent taxes. Now, my question is, is it correct (or legal) for the SSA to reduce my benefits by a staggering 40%, based on a foreign benefit that has nothing to do with my worked and taxed years in this country, which have all been taxed and paid properly according to US requirements?? I mean, how can it be legal for them to take away from my benefits earned legally and correctly in the US, when the taxes were paid in full for that amount of years worked?? They are taking away my money earned for working a specific number of years here... whether I worked in another country or receive money from other country does not, and should not, change the fact that I worked and paid taxes for that specific amount of years I'm receiving benefits for! The years worked and amount paid in taxes to the US is exactly the same, regardless... so, again, is this reduction legal?? Is there something I can do to fix this?
Sorry for the long read. Thanks in advance for any insight/help you might provide me on this matter!!