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I have to file a US tax return but don't earn enough to pay US taxes. Could you advise please?

01 November 2021

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Question by Sharon

Hello, after reading up (and agonising) I was all ready to start a pension with Wealthify, only to find that as a US citizen I am not allowed to. I live, work, pay tax, own a house, in the UK. I have to file a US tax return but don't earn enough to pay US taxes. Could you advise please? Thanks. Sharon


Answered by Allie Llewellyn

Hi Sharon,

As a UK Resident, you are entitled to open and contribute into a UK pension arrangement. However, as a US Citizen you also have to consider the interaction between the UK and US tax treaties. US reporting can be challenging to comply with and this means that you will be limited on the providers who are willing to offer pensions to US Citizens.

I would strongly recommend speaking to a financial adviser about your requirements as they will be able to provide you with guidance which is tailored to your specific circumstances.

Answered by

Allie Llewellyn

Financial Planner

Allie is an Independent Financial Planner at Mazars LLP, based in the Birmingham Office, advising individuals and business owners. She works with her clients to deliver bespoke holistic financial planning advice to help them achieve their personal and financial goals throughout the different stages of life.