UK/US double taxation treaty
I am a 22 year green card resident here, originally from the UK. Years ago I completed the relevant paperwork and have a letter somewhere from the UK revenue proving that I am UK tax exempt.
I am soon due to receive a lump sum private pension payout that will go into the UK bank account on record. I am keen to hear from anyone who has already gone through the process with the IRS as to how this works. 1) For example I will receive the lump sum in March, so do I then march down to my local IRS office and tell them the exact amount I received? This doesn't seem right as the UK doesn't tax the first 45k so how does the IRS work it out? 2) Also if I leave it until Dec to report on my 1040 will I get all kinds of penalties and interest dating back to March? 3) Does the UK figure out how much of my lump sum is actually taxable and then report that figure to the IRS and so should I wait for that to come through? If I do that wont I be back at the penalties and interest problem between the time of receiving the lump sum and the time it takes for the UK revenue to calculate the taxable amount? Any knowledgeable input gratefully received:) Alan |
Re: UK/US double taxation treaty
Originally Posted by alanroberts50
(Post 11808612)
I am a 22 year green card resident here, originally from the UK. Years ago I completed the relevant paperwork and have a letter somewhere from the UK revenue proving that I am UK tax exempt.
I am soon due to receive a lump sum private pension payout that will go into the UK bank account on record. I am keen to hear from anyone who has already gone through the process with the IRS as to how this works. 1) For example I will receive the lump sum in March, so do I then march down to my local IRS office and tell them the exact amount I received? This doesn't 2) Also if I leave it until Dec to report on my 1040 will I get all kinds of penalties and interest dating back to March? 3) Does the UK figure out how much of my lump sum is actually taxable and then report that figure to the IRS and so should I wait for that to come through? If I do that wont I be back at the penalties and interest problem between the time of receiving the lump sum and the time it takes for the UK revenue to calculate the taxable amount? Any knowledgeable input gratefully received:) Alan |
Re: UK/US double taxation treaty
Thanks, I filed years ago to avoid UK taxation. Do I need to refile again when this lump sum matures in the UK?
The UK allows something like the first 25% as non taxable on a lump sum pension payout. Is there a similar allowance with the IRS for pension lump sum payouts? |
Re: UK/US double taxation treaty
Originally Posted by alanroberts50
(Post 11808667)
Thanks, I filed years ago to avoid UK taxation. Do I need to refile again when this lump sum matures in the UK?
The UK allows something like the first 25% as non taxable on a lump sum pension payout. Is there a similar allowance with the IRS for pension lump sum payouts? |
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