theOAP

You'll note I said "resident in the UK". (And, I've made an edit to the above for clarity.) I do not know what happens when the benefit is sent abroad. I only mentioned the above since some may be reading general statements about the UK State Pension, and why some, if total taxable UK income is below the personal allowance, do not need to file the forms. I believe this is what nun was saying in post #728.

MMcD

Very Important re: Form 6166:

A "golden nugget" - A link the IRS fails to provide anywhere online - and utterly essential in order to obtain the certification of US residency, which must accompany Form 8802 when it's eventually received by HMRC (together with the Individual 2002): (mind-boggling, isn't it?)

***www.pay.gov ***

That's where you MUST go to access the secure site to pay for the Form 6166.
Once you go there - type: 8802 - in the search box at top (Do not click anywhere else or look anywhere else.)
After you've typed those nos. - hit 'Search'.
Then hit the red link 'Continue to the Form'.....and you're on your way.

Once you've paid (online-at the secure site) you'll receive an email confirmation with both a 'pay.gov' and an 'agency' tracking ID.
Enter both numbers in the "Electronic Payment Confirmation Number" field at the top of page 1 of the form 8802.
Send the completed forms 8802 and Individual 2002 to the Philadelphia IRS address indicated in the Instructions you've already dutifully ploughed thru

Then breathe a sigh of relief. You're done!.....

nun

There is full and complete information on how to pay the $85 fee for the 6166 in the instructions for form 8802. Payment options include a check and electronic payment....a route to the www.pay.gov page for 6166 fee payments is given.

MMcD

Will take your word for it....
I was looking, not for myself (I completed all this a couple of yrs. ago), but for a member who was confused about the forms.

My IRS web site search led to dead end - but, in any case, the link I provide may be more straightforward.

lansbury

I appreciated the link as my wife is about to fill out the forms. Had searched for the online payment information and like you couldn't find it. Had decided to send a check with the forms, but will not have to now.

nun

Page 2 under "Method of Payment" "Electronic payment (e-payment)".

http://www.irs.gov/pub/irs-pdf/i8802.pdf

Neillc37

When I left the UK in 97 my former employer got me to fill out a form saying I was leaving the UK. I assume this was a p85 but can't remember.
Would this be enough to get my withholding right when I withdraw my UK pensions (in about 5 years spread over a few years)? I assume I can just ring up HMRC as some point and ask them what my tax code is? I don't want to give the leaches $80 without having to.

nun

I suppose if your tax code is already NT there's no reason to file the US Individual 2002.

If you have a private pension as well as a state pension HMRC will ask your pension provider to withhold tax for both the private AND the state pension, but if your tax code is already NT I imagine no tax will be withheld. If you only get a state pension then that is paid without any UK tax being withheld and it's also UK tax free when paid to a US resident so there's no need to file a US Individual 2002.

Disenchanted

Did you see this from the POMS?
https://secure.ssa.gov/apps10/poms.nsf/lnx/0202608100
B. Definitions

1. Government

Government means:
Federal - The United States Government, including military service (see RS 01901.480) and Federal Judges receiving a full salary benefit. Foreign pensions do not cause offset.
State - The 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and Northern Mariana Islands.
Local - A political subdivision (see RS 01505.001B) including wholly owned instrumentalities (does not include interstate instrumentalities - RS 01505.005B).

As I read it your Metropolitan Police Pension is NOT a Federal, State or Local pension and so is NOT a trigger for GPO on a spousal pension benefit.

lansbury

Amazingly just had a call from the SSA, who completed our online applications over the phone.

My wife was as expected subject to WEP and the amount was to the cent what the online calculator predicted. She was claiming at age 65.

My spouse pension will be 50% of what her WEP'd pension would have been if she had claimed at 66. It is not subject to WEP because of my UK pensions, nor is it subject to the Government Pension Offset. I wasn't even asked about the details of my UK pensions, just if I received any other pension from the US.

A right result.

UK2US1979

I am glad it worked out to your satisfaction. As to < My wife was as expected subject to WEP and the amount was to the cent what the online calculator predicted..> , did the SSA calculate the WEP on a portion of the pension (years) that related to NI contributions made after April 6, 1975 (i.e earnings based)? As we discussed previously and in a PM, NI contributions up until then were flat rate stamps. As per DWP, the current pension system is based on earningd based contributions that came into effect April 6, 1975. Therefore, only a portion of the pension would be subject to WEP.

lansbury

She only paid NI contributions from 1996 to 2006 and they used her full UK State pension even though we paid to buy three years. The guy at SSA didn't know what a UK State pension was we had to explain it. He ignored her private pension as she was aleady at the WEP max. Either one of her two pensions max WEP out.

UK2US1979

OK. I was just curious if that situation applied to her. One member apparently got the SSA to agree that only a portion of his pension be subject to WEP because "earnings based" NICs became effective April 6 1975... I am not sure if he even showed his pre April 1975 years specifically because they did not fall under the definition of "earnings based". I wonder if all Expats are calculating the WEP on this basis.

nigelcg

Keep both separate. Claim your UK pension using a UK address, and have it paid by direct credit. Don't talk about the US, just claim you UK pension as normal.

The same in the US, don't say anything about your UK pension.

Keep both separate, if you don't you will create a minefield for yourself.

nun

Not good advice at all!

Claim your UK pension using the form you received. Use your NI number and enter your US SS# when asked. If your UK state pension is from voluntary contributions there will be no WEP, but you might want to talk to SSA about the change in your circumstances.

You will have no UK tax liability if you are a US resident, but you should enter the UK state pension on line 16 of your 1040 and work out the US taxable basis if you made the voluntary NI payments with already taxed US income.