Where do I enter my Uk state pension on my tax return ?

[Tuffty737]

I will be claiming my UK state pension and would like to know where I report that income on my tax return ?

[MayaD]

If you are a U.S. citizen or resident, the United States preserves the right to tax its citizens and residents (subject to certain exceptions) on their worldwide income, as provided under U.S. law, as if there were no treaty. 

You will report it under Other reportable income. 

For details  please check AmyC response.

Publication 901, U.S. Tax Treaties

The taxation of foreign pension and annuity distributions

[Edited |03/7/2025|12:34 PM, PST]

@Tuffy737

[Tuffty737]

MayaD

thank you for your response. Forgive me but I don’t see anywhere in the  publication you linked me to that says that a UK State Pension is exempt from US taxes.

[DaveF1006]

It depends. Under the UK/US tax treaty in article 17, two things come to mind.

1. Pensions and other similar remuneration beneficially owned by a resident of a Contracting State (US) shall be taxable only in that State. If you are a US resident this is only taxable in the US. If you are a US non-resident and still consider your self a resident, then the pension is only taxable in the UK.
2. Notwithstanding the provisions of paragraph 1 of this Article, payments made by a Contracting State under the provisions of the social security or similar legislation of that State to a resident of the other Contracting State shall be taxable only in that other State. Again if you are a US resident, the social security or other state pension is taxable in the US. 

If you are a US resident, you are taxed on your world wide income and this is the reason why these provisions are put into place.  You will need to report this income on your US return. If for any reason you were taxed on it in the UK, you may claim a Foreign Tax Credit for the amount of tax paid to the UK.

Please reach out if you have further questions.

@Tuffty737 

[Tuffty737]

Thank you so much for your response.

[random7]

OK, but exactly where in TurboTax do you declare this? The UK government doesn't issue an 1099-R; it's not a Wage or Salary; there's no appropriate heading under Retirement Plans and Social Security; it doesn't appear under Other or Less Common (Foreign Earned Income comes close, but it's a Pension so not Earned Income).

[AmyC]

There is a substitute 1099-R form but it requires you mail in your return and is also used as a substitute w2. Since pension income is taxed at the same rate as earned income, it can be reported as Other reportable income. Follow these steps to enter the income:

1. go to the federal income section
2. scroll to the bottom
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description  - whatever you want to say
9. Amount, enter your amount of income
10. Continue

Reference: form 4852

[random7]

Thank you. 

[irenethomson]

The answer is incorrect. Please read complete article. A UK pension will not be Doubled taxed, I. E. taxed by UK and USA. However a US citizen who receives a UK pension will be normally be taxed  by Federal taxes, but per treaty will not also be double taxed by UK. To omit UK pension from your tax return could result in severe penalties as well as taxes.

[irenethomson]

You are wrong 

[Taxedout79]

In Amy C’s response it indicates that pension income is taxed at the same rate as earned income, however that is not the case for social security income…so I’m wondering why, if uk social security income benefits tie in with us social security benefits, there wouldn’t be similar tax treatment to us social security payments. Specifically at most only 85% of us social security income is taxed, so given the arrangement between uk and us for social security why would more than 85% of the income be taxed? Also, NJ doesn’t tax us social security payments…dies it tax uk social security payments?

would appreciate any clarifications.