Donna1
Level 4
05-27-2020
05:07 PM
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I am wondering if anyone has had a client the lives in the US and is collecting pension from the Netherlands (Holland). If so, where are you reporting the income?
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BobKamman
Level 15
05-27-2020
05:33 PM
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If it's Social Security benefits, see https://www.irs.gov/pub/irs-wd/11-0040.pdf
Donna1
Level 4
05-28-2020
11:27 AM
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It is a pension.
Greta
Level 9
05-28-2020
01:51 PM
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I've been putting pensions from abroad on "Other Income" in Schedule 1.
itonewbie
Level 15
05-30-2020
08:59 AM
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On which line it is to be reported is the simple question. How it should be reported is much more complicated.
There are a good number of questions that need to be asked.
- What kind of pension is that? There are three kinds of pensions in the Netherlands: AOW (similar to OASDI, which you say it is not), company pension (similar to 401(k)), and individual pension (similar to IRA);
- Is the pension from government service and, if so, is your client a US national/citizen?
- Is the pension distribution made as a lump sum or periodic payments? If in a lump sum, when did your client terminate residency in the Netherlands? This will, in turn, affect, how foreign tax credit may be applied; and
- What basis does your client have in the distribution (depending on treaty application and position taken on the prior year returns)?
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