Thank you for that information. The payment is clearly a Bereavement support payment and under UK system, not subject to taxes. The pension related approach is not really applicable in this situation, nor is the foreign earned income, as this situation is neither. The UK did not withhold any taxes (per the non taxable regime) so there are no foreign taxes to claim. In the sense that I originally claimed this income and now have overpaid my US taxes, I believe I would be entitled to a refund, providing I can rely on the tax treaty principle of a payment that is not taxed in one state is not subject to tax in another state. Is this a reasonable position?
