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Tax on Annuity for US citizen, Australian resident

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playskoolpeople

Junior Member
I have been directed to post my inquiry here. Thank you!

Quote:
"What is the name of your state? PA

I am a US citizen residing in Australia. I am the beneficiary of an annuity as a result of my grandmother's death. I want a lump-sum payment. Do I need to have tax withheld? Does this mean I need to file a tax return? I have never done so before. Thank you for your assistance!"

Post this in the tax forum and tell them we sent you over there so that you do not get a nastygram for double posting.
 


Snipes5

Senior Member
If you are a US citizen, you should have been filing tax returns for each and every year that your income meets the US filing requirements for your filing status, regardless of where in the world you live, and whether or not you are paying Australian taxes on your income.

If the annuity is a US one, YES, you need to have tax withheld. If it's Australian, they won't withhold taxes and send them to the US for you.

In any event, your taxes are complicated. You should be able to get IRS assistance at the nearest US embassy. Don't delay.

Snipes
 

playskoolpeople

Junior Member
Thank you, Snipes5, for the response. I have never earned income in the US (having moved to Australia as an 11-year-old), hence never submitted a tax return. All income earned has been Australian (am now an Australian citizen and have been a resident for 21 years). I will try the US embassy who are not known for their friendly assistance!
 

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