# How do I report UK State Pension on US 1040 ?



## MidAtlantic (Mar 11, 2011)

I file a tax return in the US but live in France and file here also. 

I started receiving a UK State Pension in 2019 and need to declare it on the US form 1040. Can anyone advise me on how to show this income on the 2019 form 1040 ?


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## james97979 (Feb 13, 2021)

I'm also looking into how to do this as it's my first year. I read that you can offset it due to a treaty. Also that you don't need to fill in a 8833 if it's under $10,000. Let me know if you find anything out please.


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## nyclon (Apr 3, 2011)

MidAtlantic said:


> I file a tax return in the US but live in France and file here also.
> 
> I started receiving a UK State Pension in 2019 and need to declare it on the US form 1040. Can anyone advise me on how to show this income on the 2019 form 1040 ?


 I have moved your post to the tax forum where you should get more input.


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## Bevdeforges (Nov 16, 2007)

If you're receiving a pension, chances are you should be using a form 1040-SR for 2019 filing. On that form, line 5a is for "Pensions and annuities" and that's where you put your non-US SS pensions. 5a is for the total amount received (i.e. the "gross amount") while 5b is for the taxable amount of the pension.

It depends on the US-UK Tax Treaty where the state pension is taxed, but if it's taxed in the UK (i.e. by the grantor state) then you put 0 on line 5b and you're all done. I'll let someone else advise on what the tax treaty says regarding state pensions.


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## 255 (Sep 8, 2018)

james97979 -- Generally, you can report the income on line 8 (Other Income) of the 2020 Schedule 1 to IRS 1040, total Part I of the schedule, on line 9, and transfer to line 8 (Other Income) of the 2020 IRS form 1040. IRS form 8833 is for explaining a "treaty" position, that you are exercising, that overrides the tax code. If your looking to use the U.S. - UK Tax Treaty: U.S.-U.K. income tax treaty, signed July 24, 2001, London (treasury.gov) it appears that Article 17 covers pensions and in fact does allocate taxation to the "Contracting" state. Please review to make sure you are covered (there are exclusions.) So in your case, it appears you would file IRS form 8833, and exclude the income from U.S. taxation. I did not find any $10K exemption for filing IRS form 8833 and in any event you would need to file it to be able to exclude the income from U.S. taxation. Cheers, 255


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## Moulard (Feb 3, 2017)

I suspect that the $10k figure above is actually a reference to FinCen reporting thresholds not treaty based returns.

That said, Form 8833 is specifically waived when a treaty reduces or modifies the taxation of income derived from a pension under 26 CFR § 301.6114-1(c)(iv)

You also have to be mindful of the savings clause that would otherwise allow the US to tax its citizens as if the treaty was not in effect. The Social Security clause is typically protected by the savings clause, but each treaty is different and in this case three parties are involved.

Which means you also need to be mindful about which of the treaties will govern the taxation of your State Pension by the US.

You would have to look at the both the scope and limitation of benefits clauses in both the US-UK and US-France treaties given there are three countries involved here, but I suspect it is that treaty that will cover the US taxation of the UK pension rather than say the France-US treaty. Unfortunately I am not really familiar with either.


Up until very recently I would have stated that even if the your UK pension was not taxable by the US it would be reportable on your 1040. However it appears that the instructions for the 1040 have changed recently and that it now states

"You must report unearned income, such as interest, dividends, and pensions, from sources outside the United States unless exempt by law or a tax treaty."

Which now seems to suggest that you do not need to report unearned income (such as a pension) if it is exempt from US taxation by treaty.


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