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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I am a 66 year old American self-employed (in US,) now collecting

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I am a 66 year old American self-employed (in US,) now collecting my s.s. benefits. If I start collecting my u.k. state pension here, will I be taxed as an additional income? Also would I similarly be taxed on a U.K. private work pension that I am eligible for and could bring here. Could I avoid potential extra taxes thru a vehicles such as a 401K? Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloState pensions (US social security and UK state pensions) are covered under the tax treaty and are ONLY taxable in the country of residence. If you are in the US you will be taxed on the UK sourced payments. This is not handled like the US SSA benefits (SSA you are only taxed on amounts if your income is a certain level and then only up to 85% of the SSA benefits are taxable).The UK state pension is reported as a pension and all taxable or really all added to income.Yes, your private pension would also be added to your US income for taxation.As you are self employed you can still take advantage of a retirement plan (SEP, 401k, SIMPLE)https://www.irs.gov/Retirement-Plans/Retirement-Plans-for-Self-Employed-People You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.
Expert:  TaxRobin replied 1 year ago.
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Customer: replied 1 year ago.
I don't know what the investment plan called "Simple" is
Expert:  TaxRobin replied 1 year ago.
It is another type of IRA.http://www.investopedia.com/university/retirementplans/simpleira/
Expert:  TaxRobin replied 1 year ago.
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Expert:  TaxRobin replied 1 year ago.
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