U.S. Tax Treatment of Australian Superannuation Individuals

U.S. Tax Treatment of Australian Superannuation

Helping You Reconcile the Tax Liability Your Super Funds Generate

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 accounts.

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.

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 attorneys.

Contact Castro & Co. online or call (833) 227-8761 to learn how our 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.

For more information about how Castro & Co. can help you protect your Australian retirement account from unnecessary taxation, contact us online.

Our Process

Contact & Engagement

Get in contact with us, schedule a day and time for a free consultation with one of our top tax attorneys. Afterwards, we'll get your online file-sharing portal set up. This allows for us to view your documents over a secure cloud network. No need to mail or fax documents. Once the engagement letter is on file, we move to the next step.

Customized Tax Opinion

Our attorneys then draft up a customized tax opinion that shields you from certain tax penalties and interest thereon. Without a formal, written tax opinion, you risk severe penalties. In the event of an audit, our firm will represent you without additional charge and fully defend the position to shield you from any and all liability.

File Tax Return

Without legal explanation of the treaty position on your federal tax return, you risk an IRS audit. The first year, we recommend our firm filing your tax return. This will allow us to include the treaty position disclosure. After that, you'l be able to include the disclosure going forward. Moreover, if you've paid U.S. tax on your Australian Superannuation Fund in prior tax years, we can file amended tax returns to recover those taxes.

Our Other Services

  • AMT Tax Planning

    Our tax attorneys will help reduce the odds that you'll owe the AMT through proper tax planning.

  • Estate Planning

    Domestic & International trusts, assistance with life planning documents and services for businesses, which include customized retirement plans.

  • Inheritance Tax Planning

    Received an inheritance? Our tax attorneys will help structure a tax efficient strategy that works for you.

  • Pre-Residency Tax Planning

    Before moving to the U.S. make sure that you have all your financial affairs in order. We can help with this process as well.

  • Exit Tax Planning

    Before departing the U.S. it is important to know how you will be taxed upon leaving. Exit tax planning is crucial.

  • Offshore Tax Compliance

    Tax planning for individuals with offshore accounts in other countries. (FATCA).

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.

  • ABC News
  • CBS News
  • U.S. News & World Report
  • The Wall Street Journal
  • International Bar Association
  • Bloomberg Business
  • SMSF Adviser
  • The Sydney Morning Herald
  • Tax Analysts

The Castro & Co. Difference

  • Free Consultations
  • Innovative Solutions
  • Experienced & Thoroughly Published Attorneys
  • Sophisticated Global Tax Planning

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    Very great company to work with.

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