telfish

I just started receiving my UK state pension and wondered how I go about declaring it on my US taxes.

I don;t earn enough in the UK to pay taxes on it there, will I pay taxes in the USA?

How do I list it on my tax form as I will have no forms from the UK to confirm the amount?


Sorry if this has been discussed at length previously, I did search but did not find an answer.

Terry

Jscl

You report income from pensions on lines 16a (non taxable part) and 16b (taxable part) on form 1040, and you still use those lines even if the pension is from a different country and you don't have 1099-Rs (keep any statements you do have with your tax records, but don't send them to the IRS).

However, depending on tax treaty stuff and the nature of your pension, it's possible not all of it is taxable. Hopefully someone will come along who knows how that works with the state pension.

telfish

Thanks for the info. It helps.

Terry

nun

If you are a US tax resident your UK state pension is only taxable in the US, NOT the UK. To make sure there is no UK tax withheld form it you should file a US-Individual-2002 along with an US form 8802 that certifies your US residence.

You enter your UK state pension amount on line 16b of the 1040, it's all US taxable, and you can file a 4852 substitute 1099-R.

telfish

Many thanks Nun.

nun

Just another wrinkle. If you are receiving US SS make sure that if your UK state pension was funded from non-voluntary NICs you report it to the SSA so WEP can be calculated.

sunnysideup

Are you saying they will not calculate WEP unless tell them to? I thought UK and US co-operated on social security so they each know your benefits in the other system. What are the penalites if they don't deduct WEP and find out many years later they should have? If I think I might have popped my clogs by then, I think I might just stay mum.

nun

I don't know the penalties, but it's your responsibility to tell SSA about any non-SS pensions you have. You are asked if you have any when you apply for SS and should contact them is you start collecting any after SS starts. States and the Federal Government are in contact with SSA about the non-SS payments they pay, but I've never heard that the the UK does that.

telfish

I don't have enough points to collect SS so I will not be claiming any. My American wife will when she retires.

Thanks again for your advice.

nun

You can claim as the spouse of someone who gets SS

lansbury

and Medicare, depending on the circumstances he may be able to claim that.

telfish

I called into the SS office to claim Medicare on my wife's previous contributions and was told I would have to wait until she is 62 years old.

Which is a pity as I spend 700 dollars a month on a supplement to her healthcare plan for coverage!

Terry

ohiocalling

can anybody advise me on this, thanks,

I am now a US Citizen, I am deferring my UK State pension that will be approx $1800 per month when I draw it in 3 years time.

I do receive a US SS pension of $120 per month based on my contributions in the USA.

I also have a personal pension I contributed to in the UK that is $650 per month.

Will I be hot by wep.

Also mu wife will get about $450 per month from the UK and will get $400 per month based on her US contributions.

Any thoughts.

nun

If your NI contributions were not voluntary and the UK pension contributions were from wages that you did not pay FICA tax on then you will be WEPed.

Welshgator

Sorry, what is WEP again?