|
Posted by removeps-groups@yahoo.com on March 13, 2008, 11:21 pm
Please log in for more thread options
> --Sorry wasn't clear enough, if the previous US citizen is now a citizen
> of another country, what is tax status on 401K distributions?
Still not clear. You can be a citizen of the US as well as the other
country.
Assuming you are not a citizen of the US, the 401k is still US source
income, so you would have to file 1040-NR. See:
http://www.irs.gov/publications/p519/ch02.html#d0e2245
At one point California would go after 401k distributions of people
who put money into their 401k while they were California residents but
moved out of state (and were non-residents when receiving their
distributions). But the federal government eventually ruled that they
cannot do this. So it's ironical that US based 401k's are treated
differently.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by removeps-groups@yahoo.com on March 14, 2008, 1:28 pm
Please log in for more thread options
On Mar 13, 8:21 pm, "removeps-gro...@yahoo.com" <removeps-
gro...@yahoo.com> wrote:
> Assuming you are not a citizen of the US, the401kis still US source
> income, so you would have to file 1040-NR. See:
>
> http://www.irs.gov/publications/p519/ch02.html#d0e2245
However, I could be wrong. There are tax treaties between the US and
many other countries, and many allow pensions earned in one country
but received in another to be taxed in the other country only, or only
up to 5% in the earning country. Here is the list of treaties:
http://www.irs.gov/businesses/international/article/0,,id=96739,00.html
And don't forget the foreign tax credit. Basically on your US return
you subtract out the taxes you paid to the foreign government, but
only the foreign taxes on the US source income, and the remainder (if
any) is what you owe the US.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by rick++ on March 13, 2008, 11:27 am
Please log in for more thread options
> Yes, since an emigre who retains his US citizenship is taxed
> just like a US citizen back at home -- all US citizens are taxed
> on worldwide income regardless of where they reside (though emigres
> do have the foreign earned income exclusion).
Furthermore, in some cases high income ex-pats may be obligated to pay
taxes for ten years after leaving the states, whether they consider
themselves
citizens or not. This closes a tax evasion method some people have
used.
This is difficult to enforce unless you elave asset in America.
http://www.irs.gov/businesses/small/international/article/0,,id=97245,00.html
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
| Similar Threads | Posted | | Solo 401K (aka Individual 401K) same as Super-Simplified 401K? | December 3, 2007, 12:49 am |
| Overseas Investors? | April 9, 2007, 3:10 am |
| Overseas Taxes | May 24, 2008, 10:30 am |
| Re: Overseas Taxes | May 24, 2008, 7:19 pm |
| Re: Overseas Taxes | May 24, 2008, 8:00 pm |
| Re: Overseas Taxes | May 27, 2008, 10:19 pm |
| Hiring overseas consultant | March 6, 2007, 5:25 am |
| Filing from overseas with complications ... | March 30, 2007, 3:56 am |
| 1041 and overseas trustee.......... | June 21, 2006, 10:57 pm |
| Living overseas and filing US taxes | December 21, 2007, 9:56 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap