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Are UK pensions taxable in the USA

Are UK pensions taxable in the USA

Old Jan 5th 2010, 12:08 pm
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Default Are UK pensions taxable in the USA

We will be able to draw our UK pensions in a few years. We will change up money as we need it depending on the exchange rate. We no longer file taxes in the UK but in the USA now. Does anyone know if these pensions are taxable by the USA. Will we have to declare it as foreign income in the USA? Thanks in advance for any replies
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Old Jan 5th 2010, 12:11 pm
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Default Re: Are UK pensions taxable in the USA

I believe if you had to have paid taxes on them in the UK and don't then you have to declare them in the US and pay taxes on them here.

My Canadian husband has chosen to pay taxes on his retirement benefits in Canada and only declares them and writes them off on his US returns.
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Old Jan 5th 2010, 4:42 pm
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Default Re: Are UK pensions taxable in the USA

Originally Posted by MHolkham View Post
We will be able to draw our UK pensions in a few years. We will change up money as we need it depending on the exchange rate. We no longer file taxes in the UK but in the USA now. Does anyone know if these pensions are taxable by the USA. Will we have to declare it as foreign income in the USA? Thanks in advance for any replies
Generally, UK pension income is taxable in the US if you are a US Citizen or resident.

(There are some complex exceptions if a UK government pension is involved)
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Old Feb 1st 2010, 6:04 am
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Default Re: Are UK pensions taxable in the USA

Originally Posted by MHolkham View Post
We will be able to draw our UK pensions in a few years. We will change up money as we need it depending on the exchange rate. We no longer file taxes in the UK but in the USA now. Does anyone know if these pensions are taxable by the USA. Will we have to declare it as foreign income in the USA? Thanks in advance for any replies
Unfortunately, pension is not considered as "foreign earned income". For more info, look into IRS Publication 54

Pensions and annuities. For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, amounts received as pensions or annuities are unearned income.

Last edited by meauxna; Feb 1st 2010 at 7:27 am.
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Old Feb 1st 2010, 10:29 pm
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Thanks for all your replies. This site has helped us so much during the whole process of emigrating. Without you guys we might have had to hire an attorney. I have recommended this site to everyone I have known that are trying to sort out this sort of thing. Thanks to you all!!!
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