s my UK State Pension taxable in the United States?

The UK State Pension is taxable in the United States for U.S. citizens and residents, and is reported as ordinary income on Form 1040 (IRS: U.S.-U.K. Tax Treaty). Under Article 17 of the U.S.-U.K. treaty, pensions are generally taxed only in the residence country, with FTC offsetting any U.K. tax.

How the treaty applies:

• U.S. resident receiving U.K. State Pension: U.S. taxes, U.K. should not (treaty).
• U.K. resident, U.S. citizen: U.K. taxes, U.S. also taxes but gives FTC.
• Saving clause: the U.S. retains the right to tax its citizens regardless.
• Reporting: Line 5a/5b of Form 1040; HMRC P60 documents the amount.

The lump-sum 25% tax-free option in U.K. private pensions is a gotcha: the U.K. treats it as tax-free, but the U.S. does not recognize that treatment for Americans. The lump sum may be fully taxable in the U.S.

Form 8833 is usually required to disclose the treaty position if claiming the residence-state-only result.

For more, see our Taxes for U.S. Expats Living in the UK.