Thanks for the information. The link to the Nevada Law journal in your post doesn't work anymore; however, I found this link which appears to be the same one written by John A. Castro
https://scholars.law.unlv.edu/cgi/viewcontent.cgi?article=1010&context=nljforum
It's a great read!
Could you please confirm my understanding of the Tax filing requirements relating to Australian Superannuation below?
From everything I've read this whole evening, this is my understanding:
1. Australian Superannuation Income (Gains/Losses/Distributions) is considered a foreign social security, and therefore is not taxable in the US as provided by the US-Australia Income Tax Treaty Article 18 Paragraph 2 - Source: https://www.irs.gov/pub/irs-trty/aus.pdf
2. Therefore to make this election of exempting Superannuation as income for our US tax purposes, we are normally required to file Form 8833 "Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)". However, pertaining to US Code 301.6114-1(c)(1)(iv), the IRS website also says:
"You do not have to file Form 8833 for any of the following situations:... 2. You claim a treaty exemption that reduces or modifies the taxation of income from dependent personal services, pensions, annuities, social security and other public pensions, or income of artists, athletes, students, trainees, or teachers." -Source: https://www.irs.gov/individuals/international-taxpayers/claiming-tax-treaty-benefits
So in Conclusion - relating to his/her Australian Superannuation funds, the US Taxpayer therefore:
- Does Not need to report Australian Superannuation income
- Does Not need to file Form 8833 to claim treaty exemption
- But DOES need to file Forms 8938 and FinCEN to disclose the Foreign Assets Dollar amounts of the Superannuation (recommended to do so for cautionary reasons)
Is my understanding correct?
(I'm asking because since Turbotax does not support Form 8833, I don't want to print out an entire paper-based tax return just to include the Form 8833, especially when the IRS page seems to say I don't even need to file Form 8833 for Australian Superannuation. Alternatively, if you say that I should still file Form 8833 to be safe, can I just mail in the paper Form 8833 by itself along with my FinCEN and request that it be "attached" to my main tax return which I will file electronically with Turbotax? I'm trying to avoid unnecessary printing of paper.)
So any clarification would be great. Thank you so much!
