# 1040 taxes



## jimisbell (Nov 23, 2016)

Could anyone tell me the following: 1) If all my wages were foreign earned income and I'm using 2555EZ do I still enter my wages in no.7?
2) Is the interest from my UK bank account and from stocks taxable by usa?
3) Are qualified dividends taxable?
4) Are capital gains taxable, ie both short term and long term? And if not then do I still enter them on no.13?
5) Are my US social security pension and UK state pension taxable and if so to be listed on 16a and/or 20a?
Thanks to anyone who can help.


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## Bevdeforges (Nov 16, 2007)

jimisbell said:


> Could anyone tell me the following: 1) If all my wages were foreign earned income and I'm using 2555EZ do I still enter my wages in no.7?


Yes. The amount that you "exclude" using 2555EZ is then subtracted near the bottom of the first page of the 1040. It tells you which line and how to include it on one of the last lines of the form 2555EZ


> 2) Is the interest from my UK bank account and from stocks taxable by usa?


Actually, yes - but if the total is under about $10,000 you won't owe any taxes on that income. (You declare the income, but then subtract your personal exemption and then the standard deduction and if the amount of income remaining is 0 or less, there is no tax to pay.) If you have more interest and investment income than that, there is always the foreign tax credit (form 1116).


> 3) Are qualified dividends taxable?


Yes. Though again, if you have paid taxes on them to your country of residence, you can use the FTC (form 1116).


> 4) Are capital gains taxable, ie both short term and long term? And if not then do I still enter them on no.13?


Again, yes, subject to any UK taxes already paid. I believe you need to report your capital gains on a Schedule D and then report the end result on line 13.


> 5) Are my US social security pension and UK state pension taxable and if so to be listed on 16a and/or 20a?


This is kind of tricky. I think the tax treaty with the UK makes US social security taxable only in the UK rather than in the US. But to be safe, what you can (should?) do is to report the US SS pension on line 20a, then enter 0 in 20b (but check the instructions noted there). Your UK pension goes on line 16a, with 0 in 16b if the pension isn't taxable by the US (which it usually isn't). Check the treaty terms to be sure on this, but that's normally how it works.
Cheers,
Bev


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## jimisbell (Nov 23, 2016)

Thanks once again for being so helpful. God bless.


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