How do I account for taxes paid on a foreign pension bond *before* retirement, and therefore before receiving any income from it?
I lived in Ireland for one year and have a retirement bond account there. It will be distributed as a lump sum when I reach retirement age (in 13 years). In the meantime, it is taxed every year by an Irish Government Pension Levy. Not a lot - currently 0.6%, but it adds up over time.
My question is: do I (a) account for the levy tax on form 1116 and carry it over every year that I don't use it; or (b) do I wait until I actually receive the pension distribution, and deduct the total tax then? It seems to me that 1116 is only for income *received*, so I'm guessing is not the right way to go.
I have checked with the Irish revenue office and it seems the taxes are not refundable on their end.
Thanks!
My question is: do I (a) account for the levy tax on form 1116 and carry it over every year that I don't use it; or (b) do I wait until I actually receive the pension distribution, and deduct the total tax then? It seems to me that 1116 is only for income *received*, so I'm guessing is not the right way to go.
I have checked with the Irish revenue office and it seems the taxes are not refundable on their end.
Thanks!