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Where Taxpayers and Advisers Meet

Tax on Early US Social Security Pension

Mikethebook
Posts:38
Joined:Wed Aug 06, 2008 4:09 pm
Tax on Early US Social Security Pension

Postby Mikethebook » Mon Sep 03, 2018 5:03 pm

My wife, an American citizen, permanently resides and is self-employed in the UK. She is now receiving the US Social Security Pension - I think she calls it Retirement - several years before retirement age since she fulfils certain stipulations. I assume it is taxable in the UK but wonder whether it falls to be also taxed in the USA?

DavidTreitel
Posts:271
Joined:Thu Aug 16, 2012 4:31 pm

Re: Tax on Early US Social Security Pension

Postby DavidTreitel » Mon Sep 03, 2018 7:49 pm

As your wife is a US person she is doubtless filing an annual US tax return and FBAR. She'll find if she elects to use the US/UK tax treaty that US social security pension income is completely exempt from US tax. It is - in any event - UK taxable to a UK resident.

Mikethebook
Posts:38
Joined:Wed Aug 06, 2008 4:09 pm

Re: Tax on Early US Social Security Pension

Postby Mikethebook » Tue Sep 04, 2018 11:59 am

Thanks for your reply. Is there a special form required to make the election since I'm unaware of any boxes to tick on the IRS return. My wife continues to pay self-employment taxes on her earnings so that she can claim her social security pension now instead of at the normal retirement age. I presume that the election does not cover self-employment taxes but it should cover income tax on her self-employment earnings, though these are covered anyway by the Foreign Earned Income Exclusion.


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