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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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Australian taxpayer living in the US has Australian superannuation

Customer Question

Australian taxpayer living in the US has Australian superannuation income. Is it taxable on US return?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi and welcome to our site!
As you are US person (US citizen or a resident alien for tax purposes) - you are required to report all your worldwide income - so there will not be any changes based on your residency.
Your taxation is essentially will be the same and tax rates will be based on your total income, filing status and deductions.
You are taxed on full distribution - but if you previously made after tax contributions - that part is recovered tax free,
However - - you might be able to use some tax treaty provisions and exclude some types of income
See the full document here
Specifically - see page 27 - ARTICLE 18
Pensions, Annuities, Alimony and Child Support
(1) Subject to the provisions of Article 19 (Governmental Remuneration), pensions and other similar remuneration paid to an individual who is a resident of one of the Contracting States in consideration of past employment shall be taxable only in that State.
(2) Social Security payments and other public pensions paid by one of the Contracting States to an individual who is a resident of the other Contracting State or a citizen of the United States shall be taxable only in the first-mentioned State.
That actually means - you MAY claim tax treaty benefits
so your Australian pension will be taxable in the US and excluded from Australian taxation based on your US residency.
If you are living in Australia - that distribution will be taxed there and may be excluded on your US tax return.
Let me know if any clarification needed.