Dual Citizenship and taxes

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Nov 21st 2019, 6:54 pm

#16

morpeth

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Re: Dual Citizenship and taxes

Quote:

Originally Posted by durham_lad

I’m pretty sure that the SS still has to be reported on the US tax return. A great many US residents don’t pay tax on their SS. It is reported on line 5a and the taxable amount, $0, reported on line 5b. The same goes for Roth IRA withdrawals for UK residents, total reported on line 4a and taxable amount, $0, reported on line 4b.

So if 5b is 0 do any supporting forms or documentation need to be attached ? Like a statement saying relying on tax treaty or something like that ?

Nov 21st 2019, 7:27 pm

#17

durham_lad

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Re: Dual Citizenship and taxes

Quote:

Originally Posted by morpeth

The problem arises is when other income passes a threshold and then social security payments reduced, in the case I am referring to I am wondering since social security is taxed to the Uk resident, how that would be excluded from the US return- or can one just offset any US taxes against UK tax liability. Or put another way if US social security not taxable to a UK resident how is it reported on a US return ?.

Maybe someone will come along and confirm. I do know that foreign wages are reported on line 1 as if reported on a W2 but then reversed by schedule 1 line 21 copied to line 6 on the 1040 as negative other income. Maybe SS is reported in a similar way, I’m sure the IRS will want to see all income including that which is tax free. As I mentioned above, Roth distributions, even though fully tax free still have to be reported, you can’t simply ignore the distributions on the tax return.

The IRS will have received the 1099 from SS reporting how much has been paid and will want to see it on the 1040, probably on the line reserved for SS on the 1040.