Oh so now I'm (possibly) confused.
Is this thread talking about a pension earned by working for a specific employer in the UK [which could be the UK government] and paid by that entity to the individual as a result of working directly for that entity?
Or is this thread talking about a UK state pension (referenced in one of the emails by its moniker OAP (for Old Age Pension) which is most equivalent to US Social Security?
I believe the first example (pension paid by an employer as a result of working for that specific employer) qualifies per the referenced Treaty and requires the form 8833.
I believe the second example (UK state pension) is not only taxable by the IRS but also NOT subject to the 85% cap and so needs to be reported on a substitute 1099-R or as misc income and NOT as a substitute SSA-1099.
Is my understanding correct?
As a side comment, does anybody know why TurboTax does not support 8833? It is just a text response form. No interaction with any calculations. It's painful for some people to be forced to mail in their returns for this reason.
