Re: UK state pension and USA social security
Hello all,
I a British citizen living and working as a permanent resident in the US, and have been for the last four years. I am 28, and only worked in the UK (with some gaps) from age 18 until I moved at age 24. I have not been paying into my UK pension since I left, and have been taxed for US social security etc. Obviously I have not received any pension payments either. My question is, does the UK pension need to be reported on a US tax return before being paid to the recipient, and does the UK pension accrue interest which would be reportable before actually being paid out? Thanks, Jack |
Re: UK state pension and USA social security
Originally Posted by JackF
(Post 10154786)
Hello all,
I a British citizen living and working as a permanent resident in the US, and have been for the last four years. I am 28, and only worked in the UK (with some gaps) from age 18 until I moved at age 24. I have not been paying into my UK pension since I left, and have been taxed for US social security etc. Obviously I have not received any pension payments either. My question is, does the UK pension need to be reported on a US tax return before being paid to the recipient, and does the UK pension accrue interest which would be reportable before actually being paid out? Thanks, Jack If you are talking about a UK private pension covered under the US/UK tax treaty the answers are also no, although you should declare the pension for treaty purposes. |
Re: UK state pension and USA social security
Ok, good to know, thank you for your reply. It is the UK state pension I am referring to. So the US is essentially ok being unaware of this pension (neither reported or taxed) until such time as HMRC starts actually sending me money?
|
Re: UK state pension and USA social security
Originally Posted by JackF
(Post 10155194)
Ok, good to know, thank you for your reply. It is the UK state pension I am referring to. So the US is essentially ok being unaware of this pension (neither reported or taxed) until such time as HMRC starts actually sending me money?
|
Re: UK state pension and USA social security
Unless the unforeseable happens, I hope to be a citizen and still resident of the US by that point, so that shouldn't be a bridge I have to cross.
|
Re: UK state pension and USA social security
oops, misread your reply. That IS a bridge I will have to cross as US resident and citizen. Boo
Incidentally, is there a nutshell version (or indeed, thread about) what the US tax differences are between being a permanent resident and US citizen? |
Re: UK state pension and USA social security
Originally Posted by JackF
(Post 10155294)
oops, misread your reply. That IS a bridge I will have to cross as US resident and citizen. Boo
Incidentally, is there a nutshell version (or indeed, thread about) what the US tax differences are between being a permanent resident and US citizen? Not sure I understand your first comment, as a US citizen and resident you will be taxed in the US on any UK state pension.....it will be free of UK tax. |
Re: UK state pension and USA social security
Got it, thank you :) I need only think about the Uk pension in thirty five years or so, when I actually start benefiting from it. As to the differences between citizenship and residency for tax purposes, I saw other posts that indicated this would be a big deal and that the choice to become a citizen carried a lot of 'implications', aside from the personal ones.
|
Re: UK state pension and USA social security
Originally Posted by JackF
(Post 10155411)
Got it, thank you :) I need only think about the Uk pension in thirty five years or so, when I actually start benefiting from it. As to the differences between citizenship and residency for tax purposes, I saw other posts that indicated this would be a big deal and that the choice to become a citizen carried a lot of 'implications', aside from the personal ones.
|
Re: UK state pension and USA social security
Originally Posted by nun
(Post 10156058)
Becoming a US citizen has a lot of tax implications if you ever move outside the US as the US taxes on citizenship as well as residency. If you are just a permanent resident, when you leave the US, you can leave any requirement to file US taxes behind too, you can't if you are a US citizen.
|
Re: UK state pension and USA social security
Originally Posted by dunroving
(Post 10156093)
I thought there was a requirement for GC holders to file for a particular number of years after leaving the US ... or maybe it was something else I just dreamt about. :confused:
http://www.irs.gov/pub/irs-pdf/p4588.pdf |
Re: UK state pension and USA social security
Originally Posted by nun
(Post 10156267)
Under the legislation that came in in 2008 if you expatriate as US citizen or GC holder you will have to pay an exit tax if your average net taxable income for the last 5 years was over $139k adjusted for inflation or your net worth is more than $2M or you're not up to date with your tax filing for the last 5 years. You have to file an 8854 expatriation form, but after that an ex GC holder will be a NRA and I'm not sure that the previous requirement to file for 10 years after expatriation still holds.
|
Re: UK state pension and USA social security
From what I read the WEP reduction in US social security only applys if you did NOT pay into the social security system of the foreign country where you earned wages.
So, if I worked in the UK for a number of years and am entitled to a UK pension, and I paid 25 years into the USA social security system then I can receive UK Pension (Not Taxed) AND US social security without losing money due to the WEP program - Am I right?? Of course it has to be reported to the IRS I assume. |
Re: UK state pension and USA social security
Originally Posted by Foamy
(Post 10511202)
From what I read the WEP reduction in US social security only applys if you did NOT pay into the social security system of the foreign country where you earned wages.
So, if I worked in the UK for a number of years and am entitled to a UK pension, and I paid 25 years into the USA social security system then I can receive UK Pension (Not Taxed) AND US social security without losing money due to the WEP program - Am I right?? Of course it has to be reported to the IRS I assume. |
Re: UK state pension and USA social security
Originally Posted by Foamy
(Post 10511202)
From what I read the WEP reduction in US social security only applys if you did NOT pay into the social security system of the foreign country where you earned wages.
So, if I worked in the UK for a number of years and am entitled to a UK pension, and I paid 25 years into the USA social security system then I can receive UK Pension (Not Taxed) AND US social security without losing money due to the WEP program - Am I right?? Of course it has to be reported to the IRS I assume. So even though a person may pay into the US SS system through US employment it does not excuse that person from WEP on the non-contributing pension - unless the 30 year rule applies as Mummy in Foothills rightly says. |
All times are GMT. The time now is 12:01 am. |
Powered by vBulletin: ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.