CS
Level 1
12-07-2019
01:54 AM
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My client receives an annual pension from the UK having worked there for 20 plus years prior to coming to California USA. How should that pension be reported on forms 1040 and 540.?
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George4Tacks
Level 15
12-07-2019
01:54 AM
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Probable it is taxable. If tax paid on the UK pension in UK, then foreign tax credit for that amount paid. CA loves any kind of income, so taxable in CA
You probably need to get more information from the client about the type of pension and whether taxable in UK. Here is a starting point. https://www.irs.gov/businesses/the-taxation-of-foreign-pension-and-annuity-distributions
Answers are easy. Questions are hard!
sjrcpa
Level 15
12-07-2019
01:54 AM
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Once you get all that info, check the US-UK income tax treaty, too.
The more I know the more I don’t know.
