fbk300

TAX QUESTION!! I am originally a UK citizen, and took US citizenship in 2000, and have moved back to the UK. I applied for my TIAA/CREF pension to be paid me as a lump sum, and they taxed it at 30%. My belief is it should be taxed at 20% as I am a US citizen. TIAA seems a bit clueless on this one. Any advice very gratefully received. I have just found this website by trying to find out about the tax situation. Thanks!

Sue

Hi and welcome to BE. I don't have a clue about your situation, but I'm going to move your thread to our USA forum for you and hopefully the members who hang out in that section can give you some pointers.

fbk300

Many thanks!

nun

Did you fill in a W4-P?

It sounds as if TIAA/CREF have withheld 30% because it's a foreign payment and you are correct that they should not have done that because you are a US citizen, but you will be able to claim any excess back at tax time. As a UK/US dual citizen resident in the UK you will also be liable to UK tax on your US annuity payment. This is a complex situation, but you should start by calling TIAA/CREF and explaining that you are a US citizen and not subject to the 30% withholding.