What a good and detailed answer. You describe exactly what I have been doing over the past few years.
Two other points for people with UK pensions and SS.
- When first applying for SS I was asked for the amount I was receiving from the UK. In my case UK state pension for my wife and I, as well a small private pension for me. SS then used a formula and exchange rate (that they declined to explain) to reduce our SS amounts.
- It's important when declaring the UK pension amounts to log the actual $ amount received since the payment will vary each month based on exchange rate.
In my opinion its very disappointing that the US government both reduces earned SS benefits and then taxes the income of other pensions.
Tea anyone?
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