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Topic: HMRC tax on US Social Security  (Read 698 times)

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HMRC tax on US Social Security
« on: June 07, 2022, 08:32:11 PM »
Quick question. The US taxes 85% of US SS and I seem to recall that HMRC treats it in the same way i.e. that 15% of it is tax free and I only need to report to HMRC the taxable 85%. Is this correct or am I just being hopeful? ;D


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Re: HMRC tax on US Social Security
« Reply #1 on: June 07, 2022, 08:48:51 PM »
As per the tax treaty US SS and OAP are taxed in the country you are residing in.

DW and I are both UK/US citizens living in the UK and both are receiving OAP which is taxed 100% by HMRC and not taxed by the IRS. DW is also receiving US SS and 100% of it is taxed in the UK and none of it is taxed in the US.
Dual USC/UKC living in the UK since May 2016


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Re: HMRC tax on US Social Security
« Reply #2 on: June 08, 2022, 04:53:37 PM »
Quick question. The US taxes 85% of US SS and I seem to recall that HMRC treats it in the same way i.e. that 15% of it is tax free and I only need to report to HMRC the taxable 85%. Is this correct or am I just being hopeful? ;D

The percentage of SS taxed depends on your overall income. If you have only SS as income in the USA, you probably won't pay any income tax on it to the IRS. The info below is lifted from US News and World Report

    Individuals with a combined income between $25,000 and $34,000 are taxed on 50% of their Social Security benefit.
    If your combined income exceeds $34,000, 85% of your Social Security income could be taxable.
    Married couples face tax on 50% of their Social Security benefit if their combined income is between $32,000 and $44,000.
    Up to 85% of Social Security income is taxable for married couples with a combined income that exceeds $44,000.

The UK is different  When I was in the UK my SS was only taxable in the UK, but my public pension was only taxable in the USA.  My SS income (alone) only once passed the point at which any of it was taxable to HMRC - I think I paid +/- 300 pounds' tax that year.  It was subject to the personal allowance and then anything over was taxed as income.


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Re: HMRC tax on US Social Security
« Reply #3 on: June 08, 2022, 05:05:00 PM »
Quick question. The US taxes 85% of US SS and I seem to recall that HMRC treats it in the same way i.e. that 15% of it is tax free and I only need to report to HMRC the taxable 85%. Is this correct or am I just being hopeful? ;D

I just checked on your earlier posts to confirm that you are a USC resident in the UK. So, the situation is that you will pay zero income taxes to the IRS but all of your SS is taxable by HMRC. i.e. 100% of your gross SS should be reported to HMRC and when filing with the IRS the taxable portion shown on the 1040 should be zero.
Dual USC/UKC living in the UK since May 2016


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Re: HMRC tax on US Social Security
« Reply #4 on: June 10, 2022, 10:19:26 AM »
Thanks durhamlad! I was being rather hopeful..


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