How Form 3520 Expatriate 2023-2024

Welcome to our segment on foreign pensions. First, we're going to talk a little bit about what you need to do to report your foreign pensions. Then, we're going to discuss how they're taxed. So, first off, foreign pensions can be considered foreign financial accounts. This means that there may be a requirement to report them on the F bar. You may need to file Schedule B and check "yes" to question 7a. Additionally, you may also need to report them on form 8938. Another thing to note is that most foreign pensions are considered foreign trusts. So, if you've created a foreign pension, if you're receiving a distribution from a foreign pension, or if you contributed property to a foreign pension (like paying into a foreign pension, for example), then you're going to have some additional filing requirements. This will involve checking "yes" to question eight on Schedule B, filing form thirty-five twenty, and form thirty-five twenty-a. Now, let's talk a little bit about how foreign pensions are taxed. First off, in most cases, contributions to foreign pensions have no US tax benefit. Also, employer contributions contributed to your pension scheme on your behalf need to be included in your US income. They are not tax deferred like they would be in the United States. Furthermore, earnings within the foreign pension must be included annually in your gross income. This holds true unless it's modified by a tax treaty. Although the US has several tax treaties, only a select few modify this treatment of the taxation of foreign pensions. Thank you for joining us in this segment on foreign pensions. We hope you found it informative.