In a new episode of Aliyah money talks, I am joined by Ely Cole for an in depth look at how the US-Israel tax treaty works. Ely is a US tax expert and partner at Cole & Waxman. Scroll down for a full list of topics covered.
Get in touch with Ely via email or on his site.
Main topics discussed
1:40 – What is this US tax treaty and why should it matter to Olim?
3:58 – How long ago did this treaty come in effect?
4:55 – Who gets “first dibs” on US sourced investment income?
8:20 – What about Israeli real estate income?
9:50 – Who gets to tax Social Security benefits?
12:15 – Who gets first dibs on taxing retirement income such as withdrawals from an IRA or 401k?
17:50 – Double Social Security tax – does Israel have an income tax treaty or totalization agreement with the US? What is the difference?
21:50 – So if you are a freelancer, you are paying double tax?
24:30 – What are some examples of ways freelancers can avoid double taxation?
23:35 – What is the savings clause and how did you use it to take the IRS to court?
36:00 – Do you think we will ever see the end of worldwide taxation of US citizens?
- About the author
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I’m a California-licensed Investment Advisor (AWMA®), living in Israel and working remotely with clients in the U.S.
I co-founded Blue & White Finance to create clear, practical resources that help English speakers in Israel feel more confident about their money and take the next step forward. I write these guides because I’ve been in your shoes — and believe good financial advice shouldn’t be so hard to find. Feel free to reach out if you’ve got a question, idea, or just want to say hi.
