Danish Pension

[salsteve1]

I have a client that has told me that he withdrew 44,000 from his Danish Pension.  From my quick google searches it appears that pensions from Denmark are exempt from U.S. tax pursuant to the U.S.-Denmark income tax treaty.  

Has anybody had experience with this?

Is a Form 8833 needed?

[itonewbie]

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@salsteve1 wrote:

I have a client that has told me that he withdrew 44,000 from his Danish Pension.

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Clients are often not tax savvy enough to understand the nuances of technical definitions.  I would inquire exactly what that "pension" is and check whether that's covered by what's defined in the treaty as pension.  Although this particular DTA defines pension quite broadly, I'll still do my due d just to be sure.

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From my quick google searches it appears that pensions from Denmark are exempt from U.S. tax pursuant to the U.S.-Denmark income tax treaty.

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That must have been a quick search, as you said.  DTA's are tricky to read.  Take a second look at the Saving Clause in Article 1(4) and (5), then read Article 18 in details, and decide whether you still think it should be exempt.

Edit: I omitted to mention that my presumption is that this client of yours is a US citizen or resident as defined under Article 4.  If not, please come back with more info.