UK Social Security - is it taxable and how to enter in ATX

[BulldogTom]

I tried to read the treaty, and I think the rule for UK SS is - if it would be taxable to the recipient in the UK, it is taxable in the US.   How to determine that?   If it is taxable, how do you enter it into ATX?

Thanks

Tom
Longview TX

[KATHERINE]

https://www.irs.gov/pub/irs-utl/Tax_Treaty_Table_1_2019_Feb.pdf

 

Hi friend,

I checked the table, it seems like UK is tax free in US.  F1040NR schedule J?  If file 1040, then attach form 8833, then the software should carry to other income line.  I did international student from China, and that is what I did.

Thank you!

 

Kate

[B. Jani]

Is it SS or UK government pension. The client should get annual statement from government pension. It is taxable there and taxable here. I put it as other income line as UK Pension. 

[BulldogTom]

It is Old people's Pension (as they call it) similar to SS.

[TaxCPANY]

A UK pension received by a US "tax resident" is taxable on Form 1040.
Enter it on the "FECWKST" -- the Foreign Employer Compensation & Pension form -- an annoying form that requires what seem to be duplicate addresses and treat the taxpayer as still being overseas.
The bigger fight might be with US state treatment.  It should qualify for most state's exclusion of all or a portion of a 'private'/non-governmental pension (unless it indeed is from a government but I haven't handled one of those).  But I have had to fend off a couple of states that took issue with the lack of an EIN as well as monthly amounts that varied because of foreign-exchange fluctuations.
Good luck!