I have a question, if I were to change from a Pension Retirement as a resident alien to a non-resident alien and leave the US and live in a country that doesn't pay taxes. If I were to receive a 1042-S but not a 1099-R would I still be responsible for the taxes that I had paid for the year?
Assume I lived in the US on a 1099-R for 6 months and paid $2000 in federal taxes as a resident alien, and then decided to move to India and become a non-resident alien where the foreign tax treaty is 0% for the remainder of the year going forward. Should I have received a 1099-R for the portion of taxes that I paid or would it have been combined onto my new 1042-S for that year?
Basically I would like to know if I should receive a 1099-R and a 1042-S?
@jzyirek , Namaste ji.
I am not sure that I understand situation fully.
(a) The pension you are talking about -- is it from US sources or from foreign sources ? is it from private employment or govt sources ( such as Social Security / military / Civil etc. )
(b) Is it an annuity that you bought/invested in or what ?
(c) Are you saying that if you are a resident of India then the pension would not be taxed ( irrespective of the source country )?
I will circle back once I hear from you --yes ?
@Namaste ji,
I’m sorry this is more of an inquiry, as I can’t find info on the IRS pages and can’t reach them.
The pension is US and by the government.
It’s annuity and interest.
Worked and retired as a resident alien. Decided to move back to India after 6 months of taxed pay on 1099R.
India has a tax treaty of 0% so last 6 months of the year is tax free.
Received a 1042S for the 6 months tax free, but no 1099R for the taxed portion while in US.
My question was should I have received a 1099R?
@jzyirek , Namaste ji.
Since India and US has a tax treaty, the pensions/ annuity/ passive earnings from sources in either country is taxable by one or the other or both -- according to article 19 and 20 of the said treaty. So I do not believe makes any difference whether you get a 1099-R, SSA-1099 or 1042-S. Your residency may dictate whom gets to tax this income ( generally US Social Security / govt. pensions etc. are Taxed ONLY by US ).
Please read through this treaty docs.
India - Tax treaty documents | Internal Revenue Service (irs.gov)
Sorry I could not bring you better news.
Is there more I can do for you ?
Namaste ji
pk