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Hi. My name is ***** ***** I will be happy to help you. Your UK social security is treated the same way as US social security income.
If you receive US social security income you just add it together and report as one. The pension, however is fully taxable. You can include it as other income on line 21 or along with your other retirement income on line 16a and 16b.
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Ian, I received you attachments.
Let me clarify it. In US we have social security income and pension/retirement income. There are no "social security pensions" in US. After doing some research I discovered, that what you call "social security pension" in UK, is not a social security income, it is a type of defined benefits retirement/pension (pension you get for life, unlike 401K). Most of the industrial countries have some type of retirement income structure. Some are government payments, some are combinations of employee/employers savings. What you see in IRS publication is a very broadly described treatment of income received for your services after you retire. IRS publication cannot specifically address every single country and their retirement/pension/social security structures. You have to look into tax treaty to determine what apply to your specific country.
If you are UK resident, your pension is only taxed in UK (according to tax treaty). If you are US citizen, your pension is taxed in US. It will be reported as annuities/retirement income, line 16a+16b. If your pension is taxed in UK and US (in situation when income tax is withed by in UK and you are US citizen), you can claim foreign tax credit for the taxes paid to UK.
Hope this will help to clarify in.