In reading this Turbo Tax post, Article 17 of the US-UK tax treaty related to UK social security payments and would be the Article 17 cited to exempt your UK state pension from being double taxed in the US.
To qualify for this exemption, you would have need to pay tax on your pension in the UK. Now how to report, you have several options.
- If you didn't pay tax on it in the UK, you will report it is other income rather than report it as a Social Security benefit. You would report this as Also check to see if you may have entered this as other income by going to Federal Taxes -> Wages & Income>Less Common Income>Miscellaneous Income> Other reportable income.
- When it asks, "Any other reportable income?" say yes and then type in a description and the amount to report it on your tax return. Here you will put in UK pension then the amount.
- If you paid UK taxes on this benefit, in the line below the first entry, you will describe this as Article 17 of the US-UK tax treaty and record the same amount but with a minus sign in front of the number. This will negate the original entry.
As an FYI, this isn't recorded like a regular social benefit as you described because US social security benefits are not subject to full taxation but partially taxable based on other income reported in the return This is a benefit for tax payers that have paid in the US Social Security system.
@N Grant
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