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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15610
Experience:  15years with H & R Block. Divisional leader, Instructor
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I have a client that has a pension/social security from the

Customer Question

I have a client that has a pension/social security from the Netherlands and from Panama, I have the following questions:
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: 1. Are these taxed since they are foreign income. She is a US resident and now resides in the US.
JA: Anything else I can tell the Accountant before I connect you two?
Customer: 2. If it is tax where or which form do I use?...where in the 1040 do I report it......thanks
JA: I'm sending you to a secure page on JustAnswer so you can place the $5 fully refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and connect you two.
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.
HelloA US resident is taxed on all income worldwide. We have no tax treaty with Panama so the income is taxed and reported as a pension on the 1040. No accounting for cost or anything.We do have a tax treaty with the Netherlands.ARTICLE 19 Pensions Annuities. Alimony1. Subject to the provisions of paragraph 2 of Article 20 (Government Service), pensions and other similar remuneration derived and beneficially owned by a resident of one of the States in consideration of past employment and any annuity shall be taxable only in that State.2. If, however, an individual deriving remuneration referred to in paragraph 1 was a resident of the other State at any time during the five-year period preceding the date of payment, the remuneration may be taxed in the other State if the remuneration is paid in consideration of employment exercised in the other State and the remuneration is not paid in the form of periodic payments, or a lump sum is paid in lieu of the right to receive an annuity.The pension is taxable in the US as a pension. If taxed in the Netherlands also then a foreign tax credit can be claimed.For the Social Security:4. Subject to the provisions of paragraph 2 of Article 20 (Government Service), pensions and other payments made under the provisions of a public social security system and other public pensions paid by one of the States to a resident of the other State or a citizen of the United States shall be taxable only in the first-mentioned State. The Netherlands would tax the SS they paid.You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.
Expert:  Robin D. replied 1 year ago.
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