Hi and welcome to our site!
I'm expecting aprox. $60000 from England, it was left to me by my uncle. No tax has been paid in England as it's below the inheritance tax threshold. Will I have to pay tax here and do I have to report it to the IRS right away or when I next do my taxes.
For INCOME tax purposes inheritance is not taxable income in the US regardless the amount - as a recipient of inheritance you do not need to claim it as income. There is no any amount limit.
Please see for reference IRS publication 525 -
Gifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you.
When that is an inheritance from abroad and from a nonresident alien - the donor is not under US jurisdiction and does not need to report it to the IRS.
However if you receive inheritance from a nonresident aliens estate and if the total amount is above $100,000 - such inheritance is reported by the recipient on form 3520 -
However because your amount is below that threshold - no reporting woudl be required.
Also, if I retire at the end of this year I'll get $1700 social security and $1300 company pension.
Your company pension is your taxable income.
So far you are getting $1300 * 12 = $15600 in taxable pension and
$1700 * 12 = $20400 is social security benefits - which might be PARTIALLY taxable.
Here is a simple test.
- take a half of social security benefits
- PLUS other taxable income
- if the total is less than $25000 (for singles) or $32,000 (for married couples filing jointly) - none of social security benefits would be taxable
- if the total is more than the threshold - we would need to use a special worksheet to determine the taxable portion.
In your situation only a very small part of social security benefits will be taxable if you are a single person.
I also have a 401K and a large savings account. What kind of tax rate should I expect on the SS and company pension?
Depending on your filing status and deductions - most likely you are in 10% tax bracket - so your estimated federal income tax liability is ~$500.
You may review 2015 tax brackets here
However if you start distributions from 401k account - that amount will be added to your taxable income - and you might be pushed into higher tax brackets.