is foreign retirement payment taxable in US?

Forum|Forum|6 years ago
June 12, 2020
6 replies
27 views

I have a client who moved to US about 3 years ago from Turkey. In 2018, he received bulk sum amount of his retirement from Turkey government.

Does this amount need to be reported, and where on 1040 form? Is the amount taxable (notice: retirement amount is the result of the client's previous employment in Turkey, before becoming US resident)?

If taxable, can the amount be excluded under tax treaty as Turkey and US has one?

* I am trying to report the amount, but exclude it from taxation

Thanks.

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itonewbie

Level 15

What kind of retirement payment? Social security, pension with a private employer, pension for civil service, or private pension?

If it's employer or private pension, was your client subject to US tax as either a resident alien or US citizen/national prior to his relocation to the US? Did he or the employer continue to contribute to the account(s) while resident of the US? What position was taken on those prior year returns and what basis does your client have in the account(s)?

---------------------------------------------------------------------------------Still an AllStar

A

akeeeb

Level 2

It is social security pension. The client received the pension as one time lump sum. Applicable taxes were in paid in Turkey.

The client was never subject to US tax before relocation. After relocation, there was no contribution at all. In prior years, the client didn't receive pension.

A

akeeeb

Level 2

Correction: it is a private pension.

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