Cashing in foreign pension - tax implications

hoser expat · 2012-01-17 15:41:27

I have a US pension that I am thinking of cashing in. I understand that I must 'pay tax' on this pension, but do I do so in the USA or Ireland (where I now live)? I know I'll have to file a US tax return in the year that I cash it in stating worldwide income, but do I then also have to claim the money in Ireland as extra…

17-01-2012 04:41PM

#1

hoser expat

Registered Users, Registered Users 2 Posts: 181 ✭✭

Join Date: June 2008

Posts: 173

I have a US pension that I am thinking of cashing in. I understand that I must 'pay tax' on this pension, but do I do so in the USA or Ireland (where I now live)? I know I'll have to file a US tax return in the year that I cash it in stating worldwide income, but do I then also have to claim the money in Ireland as extra earned income? Does Ireland tax me on my global income?

Any advice would be welcomed!

0

Comments

#2 17-01-2012 05:49PM

chris85

Registered Users, Registered Users 2 Posts: 4,502 ✭✭✭

Join Date: June 2006

Posts: 4193

There is a tax treaty between Ireland and the US to avoid double taxation. Some more info in link below.

http://www.revenue.ie/en/practitioner/law/double/usa-1997.html

In terms of where you pay it I do not know. Maybe someone else here would be have a bit more knowledge on it.

0
#3 18-01-2012 02:08AM

_AVALANCHE_

Closed Accounts Posts: 1,620 ✭✭✭

Join Date: December 2011

Posts: 1573

Taxation Forum, I don't know if that's any help.

0