I'd like to ask for some tax advice from you good Americans, if I may. Apologies in advance for being *utterly* clueless.
I'm British but my husband is American. Until now, all our income has been UK based, so for previous years, we've claimed the foreign earned income exclusion and not been liable for any US taxes.
This year, our circumstances are different as he became the sole beneficiary of various pensions due to a bereavement. We took lump sum distributions from two pensions, one in California and one in Ohio. There's also a small monthly annuity from another pension that wouldn't pay a lump sum. (Please hold off on any lump-sum related facepunches. I know rollovers are more tax efficient, but this wasn't possibly for difficult family reasons).
Federal income tax of 20% was deducted at source from both lump sums (though still owed on the annuity payments). I understand that a person withdrawing a lump sum from their own pension would be taxed an additional 10% but that this doesn't apply to pension beneficiaries. I'll be noting these payments on form 1040 but if there are any other forms I've missed related to pension payments, I'd be glad to know.
My main concern is state income taxes. We receive post via a family address in one state and have a bank account in another, but we only visit for a couple of weeks a year at most. As we're not resident in any US state, am I correct in assuming that we don't have to pay state income tax on payments (lump sum or annuity) received from a pension?
[Next year, we'll have to figure out taxes on the rental house he inherited. When I went and married an American, I didn't realise I was committing myself to a lifelong relationship with the IRS as well...]