My daughter is a US citizen permanently resident in New Zealand. We are trying to figure out how to report KiwiSaver (New Zealand retirement plan) contributions, gains, and interest on her US tax returns. Based on internet searches, there does not appear to be consensus among tax professionals helping US expats in New Zealand. Some say a Form 8621 is required. Others say a Form 3620 and/or Form 3520A are required. It sounds like many many people report nothing for income. I am inclined to include her contributions and her employer contributions in gross income under Form 2555 (Foreign Earned Income), but what about interest, dividends, and gains? Since she will pay zero US income taxes, I am inclined to be over-inclusive and just report it as 1099 gains. We are not inclined to pay for a tax advisor for in excess of $500 given she will end up paying zero US taxes. Does anyone have experience or insight with this? (Note, we are very familiar with the FBAR Form 114 and Form 8938 reporting requirements, so we don't need any help with those. We will report the KiwiSaver as an account on the FBARForm 114.)
