Archive for the ‘Is This Taxable’ Category
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Are Expense Reimbursements Taxable
December 18th, 2011 Common Income Tax Deductions - TurboTax Video 2010
Are Military Pensions Taxable
December 6th, 2011Question: Husband pays Taxes on military pension in uk.. Do we have to declare it on usa taxes?
My husband lives in usa he receives a military pension from U.K. and taxes are paid on it there.. We have our taxes done at H.and R block they said just to leave it off we do not have to declare it. This does not sound right woul it not have to be listed as non-taxable income and put us in a higher tax bracket here in the states? Have looked high and low for the answer to this.. Even called I.R.S. they seemed uninterested. Perhaps they do not know either. Anyone know?
Answer: Per the 2010 Form 1040 Instruction booklet (page 19), you must include foreign pension income on your Form 1040, lines 16a and 16b.
You might also want to review IRS Publications 514 (Foreign Tax Credit For Individuals) and 575 (Pension and Annuity Income), since he is paying UK tax on it.
Rep. Gene Ward Addresses Military Pensions SB570