Solved: In response to bine22, the "US-German Tax Treaty" ...
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gr11
New Member

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?

 
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DanielV01
Employee Tax Expert

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?

This is considered Miscellaneous Income  (Foreign Pension).  Here's how to enter:

  1. In the Wages & Income section, go to the Less Common Income section and select Start next to Miscellaneous Income, 1099-A, 1099-C
  2. On the next screen, select Start next to Other Reportable Income and answer Yes on the next screen
  3. 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

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6 Replies
bine22
Level 7

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?

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
gr11
New Member

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?

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...>
bine22
Level 7

I'm a UK citizen live&amp;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?

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.
gr11
New Member

I'm a UK citizen live&amp;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?

Yes I know, but mine was not Governmental pension. Thanks anyway.
DanielV01
Employee Tax Expert

I'm a UK citizen live&amp;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?

This is considered Miscellaneous Income  (Foreign Pension).  Here's how to enter:

  1. In the Wages & Income section, go to the Less Common Income section and select Start next to Miscellaneous Income, 1099-A, 1099-C
  2. On the next screen, select Start next to Other Reportable Income and answer Yes on the next screen
  3. 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"

View solution in original post

gr11
New Member

I'm a UK citizen live&amp;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?

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?
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