Thanks a lot! There's a lot of need for more tax preparers who know both US and UK rules.
I'm single, no dependents, have received US social Security and a UK pension for the last 2 years (along with a small amount of excludible income that's not a problem).
I declare the social security on my UK return and pay uk tax on it. I declare the UK pension on my US return. It's been low enough that I haven't owed US tax.
In 2011 in addition to the above I will also start receiving larger distributions from my US pension fund. What is going to be the best way to treat all of this? Should I do Social security and US pension first on a US return and take a tax credit on the UK return? or the reverse?
Also, all of the contributions on the US pension were made before 1996 when I moved to the UK (although they were all pre-taxed). Is all of the US pension distribution taxable to the UK or only the increase in value since 1996 (nothing of it was ever remitted here).
