FAQ - USA - Pensions
1 - I am in the United States and receive a pension taxable in France. When do I have to pay the French income tax ?
Pensions paid by a French pension plan to a US resident are taxable in France. The tax is withheld at the time of the payment of the pension. However in some cases (multiple pensions or pension exceeding 14,245 Euros), you must file an income tax return 2042 and the regularization of the payments is made by the Service des Impôts des Particuliers Non-Résidents (Tax center for non-residents).
The tax return must include the detail of the taxable pensions and of the withholding taxes.
2 – I am retired, a US resident and I receive a pension from France. Where will it be taxed ?
Article 18 of the French-US tax treaty states that, in principle, French pensions are only taxable in France. They are exempted from US federal tax but can still be taxed on the State level. However, some States apply the provisions of the French-US tax treaty. You should contact the taxation office of your home State to see where they stand.
When they are taxable in France, pensions paid to a US resident are subject to a withholding tax. The paying agent (“Caisse de retraite”) applies the withholding tax on the net taxable amount (so after the standard deduction of 10 %).
The pensions in question are those of the basic system of social security (the general system of social security, special regimes of social security and social insurance regime for farmers) and those of the mandatory additional plans (AGIRC, ARRCO, the regime of self-employed).
3 – I am retired, French resident, non-US citizen and I receive a pension of US origin. How will my pension be taxed?
If you are not a US citizen and you receive a pension from the Social Security Administration, your pension will be taxed at 30 % of 85 % of the monthly payment. For more information, please visit the IRS website Here
A document on the taxation in France of French source pensions received by residents of the US created by the French tax attaché’s office is available here.