US Mutual Fund Distrubution

Hi,

I'm using TaxCalc to do UK taxes and need to report a systematic distribution from my US IRA mutual fund. Could anyone please tell me exactly where in TaxCalc I would report this?


TIA,
John

Not an expert here but distributions from an IRA are taxed I believe the same as regular pension income so would be reported as Foreign pensions.  If the "systematic distribution" from the mutual fund inside the IRA is kept within the IRA, i.e. not distributed, then no reporting is necessary. Distributions from an IRA are reported on a 1099-R and it doesn't matter what funds are within the IRA.

Are you electing to claim the benefit of the UK/US tax treaty? If you are not electing into the treaty, an IRS is simply a taxable investment account.

Are you electing to claim the benefit of the UK/US tax treaty? If you are not electing into the treaty, an IRS is simply a taxable investment account.

I think you mean IRA.

I am electing to claim the benefit of the UK/US tax treaty. The distribution was paid out to me, NOT reinvested into the fund. I know I have to pay UK taxes on it, but not sure exactly where to report it using TaxCalc.


Thanks,
John

I am electing to claim the benefit of the UK/US tax treaty. The distribution was paid out to me, NOT reinvested into the fund. I know I have to pay UK taxes on it, but not sure exactly where to report it using TaxCalc.


Thanks,
John

You report it as a foreign pension in Taxcalc.  Up until a couple of years ago Taxcalc only reported 90% of it as taxable but HMRC rules changed so it is now 100% taxable.

When you complete your US tax return you file form 1116 and mark is as “resourced by treaty” then claim a foreign tax credit to recover the HMRC taxes paid on it.

Thank you,
John