form 1040 help please

I have read that there isan Income Tax Treaty that means that uk pension contributions (final salary scheme from university) are not taxable in US but how do I translate that on to for 1040 please?

do i take the scheme contributions away before calculating "wages" at box 7? or is it harder than that?

I have read that there isan Income Tax Treaty that means that uk pension contributions (final salary scheme from university) are not taxable in US but how do I translate that on to for 1040 please?

do i take the scheme contributions away before calculating "wages" at box 7? or is it harder than that?

You have two options for dealing with UK tax deferred pension contributions.

1) Include them as taxable income on your 1040. Pay US tax on them now and then you will have a US tax free basis when you eventually take income.

2) You can use the tax treaty to exclude your UK tax deferred pension contributions from US tax but you can't exceed US or UK deferral limits on a similar schemes. see Article 18 of the tax treaty.

https://www.treasury.gov/resource-center/tax-policy/treaties/Documents/uktreaty.pdf

So as long as you are within the IRS deferral limits you just declare your taxable wages...ie gross wages minus the tax deferred amounts you put into the UK pension. You claim this treatment by filing an 8833.

https://www.irs.gov/Individuals/International-Taxpayers/Claiming-Tax-Treaty-Benefits

If you do not elect into the Treaty you will have to include employer contributions as non-qualified income and will need to consider if annual growth within the plan is currently taxable.

If you are required to file, the USS would need to be included on Form 8938.

If you do not elect into the Treaty you will have to include employer contributions as non-qualified income and will need to consider if annual growth within the plan is currently taxable.

If you are required to file, the USS would need to be included on Form 8938.

USS now has both DB and DC components at certain salary levels so the OP should watch out for FBAR filing as well and research the employee and employer IRS deferral limits.