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-   -   Where to report Pillar 2 employer contributions for US taxes? (https://www.englishforum.ch/finance-banking-taxation/298758-where-report-pillar-2-employer-contributions-us-taxes.html)

amalianna 22.06.2020 14:44

Where to report Pillar 2 employer contributions for US taxes?
 
Hi folks,

Iíve been googling around trying to figure out how to deal with my Swiss pension for my US taxes. Iíve learned that my (employee) contributions to Pillar 2 are not deductible in US taxes and that I probably should report my employer contributions to Pillar 2 as unearned income. But Iím not sure where I should report the employer contributions (what form?) and if (and where?) I should report the growth in my pension fund. Iíve seen some suggestions to put these on form 8938, but Iím still well below the $200,000 reportable limit. Since even with the employer contributions Iíd still be below the foreign income exclusion, I thought it might be advantageous to report these now and thus build the tax basis for retirement deductions.

I am a duel citizen (US + Swiss) and qualify for the foreign income exclusion. Iím 37 years old and think thereís a good chance I might still be in Switzerland by retirement age. Iím also using the TurboTax free online edition, in case anyone knows that software specifically.

Thanks in advance for any advice or suggestions!

surfmase 01.07.2021 07:37

Re: Where to report Pillar 2 employer contributions for US taxes?
 
Hi,

I would be interested in seeing how others do this as well. I've just been adding my employers contributions to my wages on line 1 of 1040. This could be wrong.

I'm not sure about where to report fund growth, but maybe 1040 schedule B as interest?

robBob 01.07.2021 10:59

Re: Where to report Pillar 2 employer contributions for US taxes?
 
Most important is to report all non-US accounts on the FBAR. https://www.fincen.gov/report-foreig...ncial-accounts

2nd most important is to not use the useless TurboTax. Its only designed to be used by lower income earners stateside.

Kaloid123 01.07.2021 17:04

Re: Where to report Pillar 2 employer contributions for US taxes?
 
Quote:

Originally Posted by surfmase (Post 3323255)
Hi,

I've just been adding my employers contributions to my wages on line 1 of 1040.

Employer contribution to 2nd Pillar arises directly from your employment so is included in earned compensation on Line 1 of Form 1040, also Form 2555 for foreign earned income exclusion. Fun stuff!

Kaloid123 01.07.2021 17:07

Re: Where to report Pillar 2 employer contributions for US taxes?
 
Quote:

Originally Posted by robBob (Post 3323320)
Most important is to report all non-US accounts on the FBAR. https://www.fincen.gov/report-foreig...ncial-accounts

2nd most important is to not use the useless TurboTax. Its only designed to be used by lower income earners stateside.

Maybe 3rd important for US citizens: avoid 3rd pillar investments in non-US mutual funds due to PFIC compliance headaches.

robBob 02.07.2021 09:15

Re: Where to report Pillar 2 employer contributions for US taxes?
 
Quote:

Originally Posted by Kaloid123 (Post 3323506)
Maybe 3rd important for US citizens: avoid 3rd pillar investments in non-US mutual funds due to PFIC compliance headaches.

More like avoid 3rd pillar altogether. Less Swiss tax but more US tax.

surfmase 04.07.2021 23:41

Re: Where to report Pillar 2 employer contributions for US taxes?
 
Quote:

Originally Posted by robBob (Post 3323662)
More like avoid 3rd pillar altogether. Less Swiss tax but more US tax.

Only presuming you decline the FEIE?

robBob 05.07.2021 09:08

Re: Where to report Pillar 2 employer contributions for US taxes?
 
Quote:

Originally Posted by surfmase (Post 3324756)
Only presuming you decline the FEIE?

Has more to do with the FTC
https://www.irs.gov/individuals/inte...ign-tax-credit

surfmase 05.07.2021 10:41

Re: Where to report Pillar 2 employer contributions for US taxes?
 
Quote:

Originally Posted by robBob (Post 3324788)

right, but you can't take FTC on income schielded by the FEIE. You can however, take FTC on any income over the max FEIE. So you are still right.


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