U.S. Tax Treatment of Australian Superannuation

U.S. Tax Treatment of Australian Superannuation

Helping You Reconcile the Tax Liability Your Super Funds Generate

For Australians making income in the U.S., their superannuation accounts can become a problem when it comes to taxes. As a U.S. tax resident – that is, someone making income in the U.S. regardless of their citizenship status – you must report your foreign income, bank statements, and file a U.S. tax return to the IRS each year. Any income or distributions from your Australian superannuation must be reported and accounted for in your tax returns – but there might be a way out.

What is an Australian Superannuation Fund?

If you’re an Australian working in the U.S., chances are a portion of your income is being put away so you can have a steady stream of income during retirement. While not entirely compulsory, the Australian government provides various tax incentives that encourage people like you to contribute to their superannuation also known as super accounts.

Why Choose Our Superannuation Lawyers in Washington, DC

At Castro & Co., we know that owing taxes to two nations can be a financial and legal nightmare, especially when you intend to reside in one of them for the long run. Having to report your Australian superannuation account income and distributions – and possibly pay taxes on them – only adds to your frustration, but you may be able to find relief by working with one of our experienced attorneys. We can help you manage your superannuation taxes.

Contact Castro & Co. online or call (833) 227-8761 to learn how our international tax planning attorneys can help you mitigate the U.S. tax treatment of Australian superannuation and its impact on your finances.

The U.S.-Australia Income Tax Treaty & Your Super

By default, domestic U.S. tax law applies to you unless you act to assert your rights under the U.S.-Australia Income Tax Treaty, which was created to help avoid double taxation. It’s imperative that you get an attorney to help you through this process because you’re required to inform the IRS that you intend to apply the provisions of the treaty. Doing so means you can limit or eliminate your tax liability so your superannuation account doesn’t incur taxation from both the U.S. and Australia.

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For more information about how Castro & Co. can help you protect your Australian retirement account from unnecessary taxation, contact us online to speak with a superannuation lawyer near you.

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Want to Know More?

For a more in-depth explanation, please watch this video of our Managing Partner explaining U.S. Taxation of Australian Superannuation Funds.

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