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-   -   Tax Help (stressed out) (https://britishexpats.com/forum/usa-57/tax-help-stressed-out-923865/)

dee98 Apr 4th 2019 11:35 pm

Tax Help (stressed out)
 
Hi BE,

I was looking at my 2017 return and questioning whether I need to do an amended return. When doing 1st year taxes (2017) I was still waiting for my green card. We were advised to elect the statement that we are both married and elect to be elected as us residents for the year for tax purposes,(I met the substantial presence test too). I didn't note pension contributions as I assumed it was only noted when withdrawing. I did do an FBAR and included my UK bank account and UK pension.

UK pension Overview:
* Auto-enrolled employer pension
* Contributed to it in 2017 (minimum from my paycheck and my employer matched/contributed to it too)
* Employer contributed more to my pension for than my personal contributions. Total employee contributions in 2017 are probably about 25 quid.

Looking to understand and receive advice on:
*Am I correct in saying this type of pension is not a trust as my employer contributed to it more than I did, thus being a non qualified UK pension.
* Was I required to note my pension contributions and if so what specific form should be used

I am not great with taxes and doing my best in learning more to make it easier going forward, I feel pretty stressed about it all right now. I feel like I have this year's taxes right though concerned as I want to ensure all before sending away this years return and the deadline is soon approaching. Should I file an amended return for last year?

All replies appreciated and deep apologies for asking users for help via PM I understand this is not the correct method as it does not allow others to learn.

BEVS Apr 5th 2019 1:39 am

Re: Tax Help (stressed out)
 

Originally Posted by dee98 (Post 12666266)
All replies appreciated and deep apologies for asking users for help via PM I understand this is not the correct method as it does not allow others to learn.

Well said , very true . We, BE , prefer that posters do not send unsolicited PMs to other posters on matters such as finance , taxation , immigration etc. unless invited to do so. As you correctly state , by keeping Q&A on the open chat forums it helps others looking in . It also helps those that wish to help and share as they can pool their knowledge openly to ensure a topic gets the best possible range of help & advice.

So thank you dee98. A really good call on your part . You are well on your way to being a comfy BE regular. :thumbup:

Oh for a life well lived without taxation and pensions eh? All the best.

dee98 Apr 5th 2019 2:47 am

Re: Tax Help (stressed out)
 

Originally Posted by BEVS (Post 12666292)
Well said , very true . We, BE , prefer that posters do not send unsolicited PMs to other posters on matters such as finance , taxation , immigration etc. unless invited to do so. As you correctly state , by keeping Q&A on the open chat forums it helps others looking in . It also helps those that wish to help and share as they can pool their knowledge openly to ensure a topic gets the best possible range of help & advice.

So thank you dee98. A really good call on your part . You are well on your way to being a comfy BE regular. :thumbup:

Oh for a life well lived without taxation and pensions eh? All the best.

Thank you, very much and do apologise for previously messaging folk a lot on here. I am very stressedThank you very much, I do apologise for messaging folk on here and figure posting on the forum is a better solution.

I hope that members can share advice on this topic with my situation I have alot of anxiety and worry about this since discovering it.
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Hotscot Apr 5th 2019 4:59 am

Re: Tax Help (stressed out)
 
And yet you continue to PM...what is it, about 15 since yesterday?

STOP IT!!!:banghead:

(Many would love to have nothing more than the trivial issues you're stressing about.)

BEVS Apr 5th 2019 5:30 am

Re: Tax Help (stressed out)
 

Originally Posted by Hotscot (Post 12666326)
And yet you continue to PM...what is it, about 15 since yesterday?

STOP IT!!!:banghead:

(Many would love to have nothing more than the trivial issues you're stressing about.)

OK. Not cool. :hand:

Let's have a chat dee98. See if we can get you sorted between what is a post and what is a PM. I know BE can be a bit of a 2 and 8 to navigate sometimes.

dee98 Apr 5th 2019 11:12 am

Re: Tax Help (stressed out)
 

Originally Posted by Hotscot (Post 12666326)
(Many would love to have nothing more than the trivial issues you're stressing about.)

I apologise I am using the board for any questions now


Originally Posted by BEVS (Post 12666331)
OK. Not cool. :hand:

Let's have a chat dee98. See if we can get you sorted between what is a post and what is a PM. I know BE can be a bit of a 2 and 8 to navigate sometimes.

Followed up to your message, thank you .

I apologise to the users I have messaged on here I am extremely stressed and have alot of anxiety about this. I hope any users who can help in this thread post as it will be greatly appreciated. I hope cook_county and theOAP reply as you both have a wealth of knowledge regarding these issues which I find amazing and hope to one day have as much knowledge to help other users on here.

tom169 Apr 5th 2019 11:38 am

Re: Tax Help (stressed out)
 
What's filed has been filed. You could pay a CPA to check it, but unless it's audited I would personally let it sleep.

dee98 Apr 5th 2019 1:48 pm

Re: Tax Help (stressed out)
 

Originally Posted by tom169 (Post 12666447)
What's filed has been filed. You could pay a CPA to check it, but unless it's audited I would personally let it sleep.

I can get a CPA to look at last year's return though I am worried about this year's tax return as I want to ensure that I have my schedule B correct.

I want to 100% know if my foreign pension plan is a trust or not. I am trying to find out some users said it is not and then one mentioned that it is?

I am extremely confused and worried and really hope that the BE members on here can help me, I have tried contacting CPA's just to hire to ask this question but they are all booked .

Hotscot Apr 5th 2019 3:46 pm

Re: Tax Help (stressed out)
 
It's not.

durham_lad Apr 5th 2019 4:00 pm

Re: Tax Help (stressed out)
 
I have not been your situation before but from what I gather from forums such as this is that your pension as you describe is NOT a foreign grantor trust.

Also I don't believe you should be reporting anywhere on your IRS return the contributions that you are making to your pension plan. However, I believe that when you are reporting your UK earned income you should include your employer's contributions when calculating the gross income.

Hotscot Apr 5th 2019 4:15 pm

Re: Tax Help (stressed out)
 

Originally Posted by durham_lad (Post 12666566)
However, I believe that when you are reporting your UK earned income you should include your employer's contributions when calculating the gross income.


I don't know Durham....he's not taking income from the pension...
FBAR/FATCA, for example, relate to thresholds, but 1040 is generally about income. Spending money.
If my assertion is incorrect please, someone, correct me, but quote a reference.

And Dee..stop stressing.

durham_lad Apr 5th 2019 4:42 pm

Re: Tax Help (stressed out)
 

Originally Posted by Hotscot (Post 12666572)
I don't know Durham....he's not taking income from the pension...
FBAR/FATCA, for example, relate to thresholds, but 1040 is generally about income. Spending money.
If my assertion is incorrect please, someone, correct me, but quote a reference.

And Dee..stop stressing.

I am not thinking of pensions specifically here, I am thinking of total compensation and the fact that the employer gives the employee wages plus contributions to his pension. Those contributions may be tax free in the UK but I thought they were taxable in the USA. Perfectly happy to be wrong about this.

Hotscot Apr 5th 2019 4:46 pm

Re: Tax Help (stressed out)
 
I understand your rationale however I don't think pension contributions count as income as they're not immediately accessible generally and in fact it does become income when you start drawing.

durham_lad Apr 5th 2019 6:07 pm

Re: Tax Help (stressed out)
 

Originally Posted by Hotscot (Post 12666587)
I understand your rationale however I don't think pension contributions count as income as they're not immediately accessible generally and in fact it does become income when you start drawing.

Perfect, that sounds good to me.

celticgrid Apr 5th 2019 6:53 pm

Re: Tax Help (stressed out)
 

Originally Posted by Hotscot (Post 12666587)
I understand your rationale however I don't think pension contributions count as income as they're not immediately accessible generally and in fact it does become income when you start drawing.

Makes sense in a US context, and I do work on the basis that most times common sense provides the answer.

But this is a UK product. Would it not have to be somehow 'certified' or recognised by the IRS as a pension instrument in order for the money paid by the employer not to be taxed as income?


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