Tax Law (Questions About Taxes)/income tax

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Question
Hi, Randall,

This is my question:

I am a naturalized US citizen.

Is a pension that I earned in a European country (Austria) before I immigrated to the US and that is below the required tax-filing amount, taxable in the US?

Am I even required to file for a refund since the amount is too small?

Thanks in advance for your reply and thanks,   J

Answer
Assuming that you are now a US resident taxpayer, you are subject to taxation on your worldwide income (including foreign pensions). If you meet the filing requirements to file a tax return (including this income), you will need to report this amount and potentially may be able to claim any foreign tax paid on the pension to Austria as a foreign tax credit.

Randall

Tax Law (Questions About Taxes)

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Randall Brody, EA, MBA, CCP

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Tax Samaritan is a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the unique tax issues that apply to taxpayers that are gamblers, teachers, nurses and military.

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