- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I'm a UK citizen live&work here as a Resident Alien. I received pension(private) lump-sum in 2016 for my previous job in Germany after I moved here. How do I report this?
Topics:
June 5, 2019
11:04 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
if you were a tax resident of Germany before coming to the US, the German-US tax treaty applies and might have something to say about this kind of income
June 5, 2019
11:04 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
In response to bine22, the "US-German Tax Treaty" is exactly why I need to declare this income to IRS here in the US, because I am a Resident Alien and the payment was made after I moved here and been working here, AND in the FY2016 I only lived and worked in the US and had no income or employment in Germany. I'm following one of the Q&A found here "Under the US - Germany tax treaty, you will need to include this foreign pension income on your US income tax return." <a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/the-taxation-of-foreign-pension-and-annuity-distributions">https://ww...>
June 5, 2019
11:04 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
But the treaty also says that german social security payments are treated just like US social security payments (reported on a SSA 1099 and not as misc. income). The question is, if that is valid for lump sum payments as well.
June 5, 2019
11:04 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Yes I know, but mine was not Governmental pension. Thanks anyway.
June 5, 2019
11:04 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
This is considered Miscellaneous Income (Foreign Pension). Here's how to enter:
- In the Wages & Income section, go to the Less Common Income section and select Start next to Miscellaneous Income, 1099-A, 1099-C
- On the next screen, select Start next to Other Reportable Income and answer Yes on the next screen
- You will now make two entries on the Other Taxable Income screen: First, you will enter the topic Foreign Pension, and then you will enter the amount in American dollar equivalent.
If you paid foreign taxes on this, you can receive a credit for this on Form 1116. Here's an FAQ on this: https://ttlc.intuit.com/replies/3302405
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
June 5, 2019
11:04 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Thanks very much for your advice TurboTaxDanielV. Since I have already filed and received my tax return for 2016, I went to "Amend my 2016 return" and followed the steps to enter the details. The "Tax Due" amount for Fed and State appears to be very high, at around 30% of the pension money received. Is this the final amount I will need to pay, or will it be adjusted?
June 5, 2019
11:04 PM