Thread: US Taxes on UK pensions

My wife is retired, recently moved to the US, has a green card and she receives a pension from her UK job. Has anyone been in that situation,
and how does if affect you taxwise?

Originally Posted by Purseval

My wife is retired, recently moved to the US, has a green card and she receives a pension from her UK job. Has anyone been in that situation,
and how does if affect you taxwise?

She will have to declare her UK pension to the IRS.
Whether she will pay tax on it depends on her worldwide income.
The UK report State Pensions to the US.

I was told by the Social Security people here that because I am entitled to a State Pension from both the UK and USA, the amount of my UK Pension may be reduced.
I have asked them to be more specific, I want written details and amounts in my particular case.....still waiting!

She was a schoolteacher in England. There are a few problems. First, programs like TurboTax don't seem to recognize income from foreign pensions, they don't have the proper forms. Also, the British equivalent of a W-2 comes out later than the American version. We are in a quandry right now as to whether we should just leave her pension off until they question us on it, file for an extension or estimate it.

If I were you I would go have a chat with a tax advisor.
Maybe even call the IRS
It's complicated as the tax year is different in the US.
My accountant, who was qualified in the UK and Ireland before he came to the US, automatically files an extension for me every year, however that's just extra time for filing my return.....I still have to pay on 15th April, or arrange to make payments.
This might help:

Publication 519 (2007), U.S. Tax Guide for Aliens

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