USA tax on savings
#1
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Joined: Jan 2012
Posts: 23
USA tax on savings
Hi,
When my wife and I retire to the USA I will be in receipt of a works pension from the UK. I understand that that I will be taxed on my pension in the UK but NOT taxed on the same pension again when it arrives in the USA due to an agreement between the both countries..... Could anyone who has experience of this please confirm that this is true.
Also I will be investing a lump sum in the USA in the hope of it producing a further monthly amount to boost my income. I know that I will have to pay USA tax on any interest that I earn from the lump sum but could anyone give me a rough idea of what percentage you are taxed at. I'm not talking about a huge amount, probably earning interest in the region of about another $ 600 to $800 per month.
Many thanks.
When my wife and I retire to the USA I will be in receipt of a works pension from the UK. I understand that that I will be taxed on my pension in the UK but NOT taxed on the same pension again when it arrives in the USA due to an agreement between the both countries..... Could anyone who has experience of this please confirm that this is true.
Also I will be investing a lump sum in the USA in the hope of it producing a further monthly amount to boost my income. I know that I will have to pay USA tax on any interest that I earn from the lump sum but could anyone give me a rough idea of what percentage you are taxed at. I'm not talking about a huge amount, probably earning interest in the region of about another $ 600 to $800 per month.
Many thanks.
#2
BE Forum Addict
Joined: Apr 2011
Location: The Shire
Posts: 1,117
Re: USA tax on savings
Hi,
When my wife and I retire to the USA I will be in receipt of a works pension from the UK. I understand that that I will be taxed on my pension in the UK but NOT taxed on the same pension again when it arrives in the USA due to an agreement between the both countries..... Could anyone who has experience of this please confirm that this is true.
When my wife and I retire to the USA I will be in receipt of a works pension from the UK. I understand that that I will be taxed on my pension in the UK but NOT taxed on the same pension again when it arrives in the USA due to an agreement between the both countries..... Could anyone who has experience of this please confirm that this is true.
EDIT: If you are a US Person, you should be declaring the works pension to the US regardless of residence.
Also I will be investing a lump sum in the USA in the hope of it producing a further monthly amount to boost my income. I know that I will have to pay USA tax on any interest that I earn from the lump sum but could anyone give me a rough idea of what percentage you are taxed at. I'm not talking about a huge amount, probably earning interest in the region of about another $ 600 to $800 per month.
Many thanks.
Many thanks.
Sorry to be so vague, but computation of income tax in the US bears no resemblance to how it's calculated in the UK. The US returns are heavily based on deductions, exclusions, exemptions, and credits. Aside from your visa type, information needed to respond is not the kind of information you would want to put on a public forum.
Last edited by theOAP; Feb 24th 2012 at 11:35 am.
#3
BE Forum Addict
Joined: Apr 2011
Location: The Shire
Posts: 1,117
Re: USA tax on savings
You can give this calculator a try, but unfortunately, much of the language used may be difficult for someone unfamiliar with the system. It's a good example of the variances of the US system.
http://www.dinkytown.net/java/Tax1040.html
http://www.dinkytown.net/java/Tax1040.html