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Social security pension abroad?

Social security pension abroad?

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Old Oct 3rd 2012, 7:14 pm
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nun
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Default Re: Social security pension abroad?

Originally Posted by Steve_

Note also even if you renounce US citizenship, you may still need to file a tax return, i.e. if you've been a US citizen or LPR for more than eight years you have to file a 1040NR and an 8854 for ten years. Read IRS publication 519.
I thought that under the new rules once you expatriate there's no need to file US taxes unless you have US income and gains.....that ten year rule went away.

The big issue is if you are a covered individual and you have US retirement accounts. When you expatriate you give up any treaty rights so your retirement accounts will be taxed at 30%, because you are an NRA. Even if you are a UK resident you cannot use the treaty to make the US pension payments free of US tax.

So if you have US retirement accounts and are a covered individual I would not expatriate......I would only consider it as a non-covered individual.
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