# UK/US Double Taxation



## gpbritus

I am surprised it is so hard to find discussions on this topic...perhaps the site designer could change this!

I do not work in the US and receive pensions from the UK and reside permanently in the US. I currently pay income and state tax in the US, and it occurs to me that I may be paying more federal and state income tax than if I opted for UK treatment. Does anyone have any insight to this e.g.

can I choose to change back to UK treatment? How does my modest US social security play into this? Are tax treatment issues complicated by being married to a US citizen?


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## Bevdeforges

You must have missed the Expat Tax section here - but no problem, I've moved your post over here with the other tax issues and questions.

The fact of your being a permanent resident in the US means that you must report and pay US taxes on your worldwide income. Period. Your UK pensions should be adjusted for whatever taxes are due on them in the UK (there is a tax treaty between the US and UK that is supposed to avoid double taxation on pensions) and any income taxes you pay on your UK pensions to the UK government can be taken as credits against you US income taxes. 

Your US social security payments have already been adjusted for the fact that you receive a UK pension (if it's a government pension, that is), thanks to something called the WEP (windfall elimination provision). And the taxability of your US SS payments depends on what other income you have and your filing status.

Being married to a US citizen doesn't really "complicate" your tax issues, though it does give you specific options. You can (and probably should be) filing jointly with your spouse. Filing jointly is the "norm" and gives you the widest range of choices.
Cheers,
Bev


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