Tax Filing and FBAR
Mar 4th 2023, 7:20 pm
#1
Just Joined
Thread Starter
Joined: Oct 2017
Posts: 7
Tax Filing and FBAR
This past year I started taking my UK Employee Pension. The annual distribution is 6809 pounds. I am not sure I need to submit an FBAR or a Form 8938 as I do not think I reach the thresholds. I did complete the online FBAR filing even though I am not sure I needed to, and I am submitting the substitute 1099R with my taxes. Do I also need to submit an 8938 or any other documents?
Mar 4th 2023, 9:01 pm
#3
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Tax Filing and FBAR
I am in a similar position, report the income on my IRS return and don’t include it on my FBAR.
Mar 5th 2023, 7:23 am
#4
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,544
Re: Tax Filing and FBAR
(this is just from memory, I’m in the UK so don’t have my dusty Manila folders to consult. Returning to US in ten days time, to do taxes and attend a wedding.)
Mar 5th 2023, 1:24 pm
#5
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Tax Filing and FBAR
Hmm. I do the 8938 anyway, as I have bank accounts and such in the UK. For my UK final salary pension, I DO report it on the 8938 (really no extra work for me, since I file the 8938 anyway.) But I agree with GG and d_l, I don’t report it on the FBAR.
(this is just from memory, I’m in the UK so don’t have my dusty Manila folders to consult. Returning to US in ten days time, to do taxes and attend a wedding.)
(this is just from memory, I’m in the UK so don’t have my dusty Manila folders to consult. Returning to US in ten days time, to do taxes and attend a wedding.)
Married taxpayers filing a joint income tax return. (living overseas)
Married taxpayers filing a joint income tax return. (living overseas)
If you are married and you and your spouse file a joint income tax return, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the tax year.
If you do not know or have reason to know based on readily accessible information the fair market value of your interest in a foreign estate, foreign pension plan, or foreign deferred compensation plan during the tax year, the value to be included in determining the total value of your specified foreign financial assets during the tax year is the fair market value, determined as of the last day of the tax year, of the currency and other property distributed during the tax year to you.
Mar 5th 2023, 3:23 pm
#6
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,544
Re: Tax Filing and FBAR
We file as US residents so I think our threshold is $100,000. I just use the last section of 8938, other assets, and simply identify the pension provider name and address etc., and give the value of the asset as $0. I don’t think 8938 requires you to specify the year’s income, so no, it didn’t count toward the value calculation. We only had to file 8938 last year, since we had to close our main UK bank account and open a new account, since the first bank went out of business so the ££ got counted twice.
Mar 5th 2023, 4:05 pm
#7
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Tax Filing and FBAR
We file as US residents so I think our threshold is $100,000. I just use the last section of 8938, other assets, and simply identify the pension provider name and address etc., and give the value of the asset as $0. I don’t think 8938 requires you to specify the year’s income, so no, it didn’t count toward the value calculation. We only had to file 8938 last year, since we had to close our main UK bank account and open a new account, since the first bank went out of business so the ££ got counted twice.
Mar 6th 2023, 8:19 pm
#9
Just Joined
Thread Starter
Joined: Oct 2017
Posts: 7
Re: Tax Filing and FBAR
I filed my taxes yesterday and found that I cannot e-file with a 1099R because it requires the Payers TIN. So in the end I just added the income under additional income and noted it was a UK Pension.
Mar 6th 2023, 8:28 pm
#10
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Tax Filing and FBAR
I always simply put 99-1234567 for the payer’s TIN. Have done that for my UK pension substitute 1099Rs for 15 years now.
Mar 8th 2023, 3:08 pm
#12
Just Joined
Joined: Oct 2010
Location: Neath
Posts: 10
Re: Tax Filing and FBAR
I had an UK AVC linked to a Local Government Pension that I found I could not access so had to convert it to a UK SIPP from which I can now draw cash, do I need to declare the SIPP on the FBAR?
Last edited by BrianLR; Mar 8th 2023 at 3:11 pm. Reason: added more details
Mar 8th 2023, 3:13 pm
#13
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Mar 8th 2023, 4:03 pm
#15
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Tax Filing and FBAR
Maybe, but for sure it needs to be listed as a foreign account on the FBAR as well. For those of us who have hit the thresholds, accounts are listed both on an FBAR and an 8938 with our IRS filing. Government departments never seem to share information and the FBAR goes to the Financial Crimes Enforcement agency, not the IRS.