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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2856
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I had an Australian Superannuation. Was working on 457 and

Customer Question

I had an Australian Superannuation. Was working on 457 and visa was expiring so moved back to the US We left in Oct 2015 and it was distributed in dec 2015. Trying to figure out where to enter the information for tax credit on amount taxed at 35% for withdraw. Company contributes into account 9.5% of gross income and ATO takes 15%. This amount we have reported each year on US taxes and know how to do that, but not the distributi0on of funds.
JA: Tell me more about your problem so I can decide what kind of lawyer you need. You might want a tax professional specialist or a essay tutor specialist. Are either of these what are you looking for?
Customer: Not sure the difference between the two.
JA: I'm sorry but I'm not sure we have an expert who covers what you are looking for. Maybe if you give me more details I will find you a connection to someone who can help you.
Customer: Australian Superannuation is a government mandatory contribution in Australia for a pension. The IRS considers it a nonqualified retirement plan. The AU taxes amounts in at 15% every time a contribution in put in. Then you have to wait until you are 60 if permanent resident to receive payments; however, if you are a temporary resident like us, then you have to claim it as a Departing Australia Superannuation Payout at which time they take an additional 35% out and give to you in a lump sum payout.
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: I received a PAYG from the Super fund detailing the amounts. I need to know which forms to complete for this and where it goes on my taxes and how to enter the foreign tax credit for the distribution.
JA: I can help you talk to the tax professional. Thanks for coming to JustAnswer. How can we help?
Customer: I need to know which forms to complete for this and where it goes on my taxes and how to enter the foreign tax credit for the distribution of the non qualified foreign retirement plan.
JA: OK. The tax professional will know what to do. Please tell me everything you can so the tax professional can help you best.
Customer: Is this on a loop? I have already done this.
JA: Anything else I can tell the tax professional before I connect you two?
Customer: no
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Submitted: 7 months ago.
Category: Tax
Customer: replied 7 months ago.
All in USD Gross Distribution: 32751, AU tax withheld: 12445, Total amount contributed by employer: 28366
Every year the 9.5% paid into by the employer reported on line 21 as other income Australian non qualified superannuation retirement plan of 1040. and tax credit taken for the 15% tax paid on 1116 passive. With being a temporary resident they have a departing Australia superannuation Payment at which time they tax the lump sum at 38% more. I am pretty sure that this distribution tax counted as foreign tax credit on US taxers, but I am not sure where to enter the information.
Expert:  lrizos replied 7 months ago.
Good MorningIs this for a US income tax return or Australian?Can I assume you have withdrawn your Superannuation and tax has been withheld?
Customer: replied 7 months ago.
I know how to complete my Australian Tax Return. This is in regards ***** ***** US Federal Income Tax return.
Yes I have withdrawn my superannuation 12/2015 and tax was withheld in Australia.
Expert:  lrizos replied 7 months ago.
I will send it to the US Lawyers.
Customer: replied 7 months ago.
So, you aren't able to help me? But you are forwarding this to a US Lawyer within your network?
Expert:  lrizos replied 7 months ago.
I am an Australian LawyerI have requested your question be forwarded to a US Tax lawyer.
Customer: replied 7 months ago.
Okay, thanks.
Expert:  lrizos replied 7 months ago.
You are welcome
Expert:  Barbara replied 7 months ago.
Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.Your Super distribution will be reported on Line 16b of your 1040.The taxes you paid on the distribution will be reported on Form 1116 and the credit will flow through to Line 48 of your 1040.https://www.irs.gov/pub/irs-pdf/f1040.pdfhttps://www.irs.gov/pub/irs-pdf/f1116.pdfPlease let me know if I can assist you further.Thank you and best regards,Barb
Expert:  Barbara replied 7 months ago.
Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you.Best regards,Barb

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