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Naturalized US citizen receiving lump sum pension from his overseas life and work

Hello, 

I’m a Naturalized US citizen. I migrated more than 22 year ago. I just received lump sum pension from my overseas life and work.

Please, how do I report this and if I have to pay any tax about it?

Thanks

 

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5 Replies
rjs
Level 15
Level 15

Naturalized US citizen receiving lump sum pension from his overseas life and work

RUN to a tax professional or tax lawyer who is familiar with the U.S. tax treatment of pensions from your country. I say run because you might have a limited amount of time to avoid or defer paying tax on the lump sum, perhaps as little as 60 days. The options are different for different countries, and might depend on a tax treaty between the U.S. and the other country. This is not a do-it-yourself project. You need an expert with specialized knowledge. The expert that you consult will be able to tell you how to report the lump sum.

 

Naturalized US citizen receiving lump sum pension from his overseas life and work

Thank you for the advice, I wonder if there is any of the professionals or services in TurboTax that can provide this guidance. 

pk
Level 15
Level 15

Naturalized US citizen receiving lump sum pension from his overseas life and work

@CarlitosWay , while I agree  with @rjs  that  professional help  may be required  (depending on your own familiarity  with US  tax regs on pension ) I would first  familiarize myself with   (a)  tax treaty between US and that  other country ;  (b)  source of the pension  i.e.   local govt. / social security  equivalent in that country, private  employer,  providend  fund or similar , annuity / insurance etc. . etc. etc. );  (c) your own contribution  if any etc. 

 

If you need more help on this , please consider providing the above details and I would be happy to help.   Note that  if you feel that this is not of general interest  or otherwise do not wish to put info on this public board , you are quite welcome to PM me and I will come back.  In any case , please  NO PII  ( Personally Identifiable Information).

 

pk

rjs
Level 15
Level 15

Naturalized US citizen receiving lump sum pension from his overseas life and work


@CarlitosWay wrote:

Thank you for the advice, I wonder if there is any of the professionals or services in TurboTax that can provide this guidance.


@CarlitosWay  TurboTax does not provide consulting or advice for this type of situation. pk, who replied above, is not a TurboTax employee (nor am I).

 

pk
Level 15
Level 15

Naturalized US citizen receiving lump sum pension from his overseas life and work

@CarlitosWay , my comments on the above response  from my colleague @rjs :

 

 1. I apologize  that my colleague @rjs'  answer seems to imply that us  volunteers , while not employees of Intuit,  have lesser  knowledge  about topics  than  tax professionals.  On the contrary , most of the volunteers  ( champs or otherwise designations ) are generally retired tax professionals  or people with great familiarity with the product.  We volunteer because  we desire to help the " do-it-yourself"  tax payer prepare  and file an accurate  tax return.

2. TurboTax  product(s) is  focused  towards the DIY  tax  preparer , implying that  if you have to run to a tax professional   for your return prep.  for each and every  uncommon situation,  then the product has failed  ( either by design or otherwise).

3. Personally,  having helped  many  TurboTax users over the years, I am convinced the  product is quite capable of handling  most complex situations.  Your particular situation of foreign pension is not that uncommon and therefore  the question becomes  (a) is the product capable  of   handling the situation  and (b)  is the taxpayer  ( with help from the community or otherwise) able to navigate and complete a correct return .   My view is that the product is quite capable  and so is the  taxpayer  i.e. the product   ( the  right version  ) is capable and so is the taxpayer ( perhaps with help from the community ).   Thus I vehemently disagree with my colleague ( @rjs )  that one must run to a tax professional  for any such situation.

4. Additionally,  just because  one is a tax professional  ( whether credentialed or not  ) does not imply/ assure  that one is conversant with international taxation ( in fact few are --- and I say this based on my experience with a number of CPAs / EAs  while  on advisory panels  for the US treasury) .

 

In summary/ conclusion , my suggestions and  statements above stand.  I recognize  that we , as volunteers helping  TurboTax users, are  not supposed to  criticize  post by a colleague -- this is an exception in my view.

 

Is there more I can do for you ?

 

 

pk

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