iceflow

I dug this out from a post a couple of years back. Does this still hold true do you know? There are two different rates quoted.

Thanks

For FBAR and 8938 (FATCA) you should use the Treasury end of year rate http://www.fms.treas.gov/intn.html#rates

The IRS Yearly Average Currency Rate may be used for, "income received evenly throughout the tax year" eg a regular pension payment. http://www.irs.gov/Individuals/Inter...Exchange-Rates

MidAtlantic

Yes that is still the case. You do not have to use the Average Currency Rate but, in my experience, it has always been more favorable than using the mid-market rate for the date on which payments are received.

The direct link to the Treasury Rate is here:
https://www.fiscal.treasury.gov/fsre...rrentRates.htm

durham_lad

+1

I maintain a spreadsheet with my UK monthly pension payments converted to $s using the rate on the dates I receive them. I then total the $s for the 12 payments and also calculate the annual £ total converted to $s using the published average IRS rate and it is also most advantageous to me to use the IRS average rate.

iceflow

OK folks, thanks

Lololita

I made a withdrawal for the first time from my UK personal pension and HMRC refunded my tax as it was less than the annual allowance. Do I have to pay US tax?

I think the answer is yes; I'm just asking to be sure, as I haven't read the Tax Treaty and I want to check here with people who may have read it in case there's anything that says if you're exempt in one country you're also exempt in the other, which may apply here. I'm both a UK and US citizen and am resident in the US.

Thanks.

lansbury

I think you are subject to US tax.

durham_lad

+1

I was a dual citizen also living in the USA when I started receiving a UK pension. Even now that I am back in the UK I still pay US taxes on my UK pensions (I now receive 2 of them). I create a substitute 1099-R for each of my pensions. However I now also pay UK tax on my UK pensions so I claim an FTC on my US taxes so I am not double taxed.

Hanco

Hi all, I normally use the exchange rates shown here: https://www.irs.gov/individuals/inte...exchange-rates

Maybe I need to wait until Feb 2019, or just give them chance to update after the shutdown? (It only shows up to 2017. No 2018 numbers for sterling to the dollar yet)

What do you do for UK income you received in 2018?

Giantaxe

They have indeed been delayed because of the shutdown. Presumably they'll appear over the next three weeks (before the next shutdown :-)).

durham_lad

I also use the exchange rate in the link above but have never filed before the IRS 2018 rates have been released. If you look at my post above you'll see an alternative IRS accepted method used XE.com but I have always found that the IRS average rate is much more advantageous to me. Well worth waiting until that rate is published IMO.

MidAtlantic

I agree.

MidAtlantic

The IRS Yearly Average Currency Exchange Rates for 2018 are now published. https://www.irs.gov/individuals/inte...exchange-rates

Yeah, my tax return will soon be on the way!

durham_lad

Cool, thanks for the update.

MMcD

Thanks for that

lansbury