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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2995
Experience:  IRS licensed Enrolled Agent and tax instructor
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Last year while visiting England I found out I had UK State

Customer Question

Last year while visiting England I found out I had UK State Pension (similar to Social Security here in USA) money owed to me for past work history in UK, it's a small amount about $400/month and I received a catch up lump sum at the beginning because I waited so long to apply for benefits. I am not a US citizen but am retired here now, I have a green card and am on good terms with US Govt, do I report this State Pension Income on same line and use same rules for My Social Security - I received no tax reporting statements from UK - a friend of mine does not think I need to report this at all since it is a foreign Govt/State Pension and there is some sort of tax treaty? I am still trying to find the treaty. I also heard that the fines for not filing foreign income can be very adverse.
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

According to US-UK tax treaty if you are US citizen or permanent resident (green card holder), UK social security equivalent payments are treated just like US social security payments. You will report it on line 20a and 20b of 1040. The income may be taxable depending on your filing status and other income.

Here's an article that is easier to read than the tax treaty:

http://finance.zacks.com/uk-social-security-benefits-taxable-us-11243.html

Let me know if you have any questions.

Expert:  emc011075 replied 1 year ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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