Carmel Fell

I have an IRA in the USA which I can start to dip into. I wonder if anyone knows how I find out about taxation on the IRA and if I have to file a tax return in the USA. I am british citizen and spent 14 years in the USA so I have some social security coming my way in a few years Also. I intend to leave both in the USA so I can use when needed over there. Any one point me in the right direction?
THANKS

Jerseygirl

Welcome to BE. I have moved your thread over to our US forum. Someone will probably be along soon to help you.

nun

If you are not a US citizen and resident in the UK then periodic payments from an IRA are only taxable in the UK, if you take the money out in a lump sum then it's only taxable in the US.

You should file a W-8BEN with your IRA administrator and claim the 0% tax rate for periodic payments under Article 17.1 of the tax treaty. Your administrator might still withhold tax at 30% as that's the default for overseas payments and if that is the case you'll have to claim the tax back by filing a 1040NR. You will have to do a UK self assessment to pay the UK tax due on periodic payments.

Carmel Fell

thank you, that is very, very helpful. The form seems to want a SS Number, I do have one but is it necessary?

nun

Yes a SS is necessary.

Carmel Fell

Thank you