Are French disability pensions taxable for US citizens if already taxed in France?

You definitely need to report your French disability pension on your US tax return. As a US citizen, you're required to report your worldwide income, regardless of where it's earned or paid. The good news is that you likely won't end up paying tax twice on the same income. The US-France tax treaty has specific provisions for pensions, and you can also take advantage of the Foreign Tax Credit by filing Form 1116 with your tax return. This credit allows you to offset your US tax liability with the taxes you've already paid to France. I would recommend looking at the specific classification of your disability pension under the tax treaty, as some disability payments might qualify for special treatment depending on why they're being paid and how they're classified under French law. You should also look into filing amended returns (Form 1040-X) for previous years if you haven't been reporting this income. There's generally a 3-year statute of limitations for amending returns, but it's best to get compliant as soon as possible.

I went through something similar with my German pension last year. I spent hours trying to figure out all the forms and got so frustrated with contradicting information online. Then I found this amazing AI tool called taxr.ai (https://taxr.ai) that literally saved me during tax season. You upload your tax documents and pension statements, and it analyzes everything according to the specific tax treaty between the US and France. It identified exactly which sections of my foreign pension were taxable in the US and which weren't (there's a difference!). It even figured out the exact Foreign Tax Credit I was eligible for and prepared all the forms I needed. The best part was that it explained everything in simple language, not tax jargon. It walked me through each step for reporting my foreign pension correctly.

I have to admit I was totally wrong about taxr.ai. After my skeptical comment, I decided to try it for my complicated Spanish disability pension situation. I've literally had three different accountants give me three different answers over the years. The tool immediately identified that my specific type of Spanish disability benefit falls under Article 18 of the US-Spain tax treaty, but with special provisions due to its disability nature. It showed me exactly which portions were exempt under the treaty and which needed to be reported. What really impressed me was how it walks you through the Form 1116 foreign tax credit allocation - something my previous accountant had calculated incorrectly for years! I ended up amending my last year's return and got back $3,200 that I'd overpaid. The documentation it provided explaining the tax treatment was so clear I actually understand my tax situation for the first time in years.

For anyone trying to reach the IRS with questions about international pensions or foreign tax credits - good luck! I spent WEEKS trying to get through to someone who actually understood international tax issues. Always on hold for hours only to be transferred to another department. Finally found Claimyr (https://claimyr.com) and it was a complete game-changer. They got me connected to an actual IRS agent who specialized in international taxation in less than 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through exactly how to report my Canadian disability pension on my US return and confirmed which tax treaty provisions applied in my case. She even sent me the specific IRS publications I needed to reference. Would have saved myself months of stress if I'd known about this service sooner. Totally worth it when you need authoritative answers directly from the IRS on complicated international tax situations.

I have to publicly eat my words about Claimyr. After posting my skeptical comment, I was desperate enough to try it for my UK pension issue that had been hanging over my head for months. Not only did they get me through to an IRS rep in about 15 minutes (compared to my previous attempts where I gave up after 2+ hours on hold), but they actually connected me with someone in the international tax department who immediately understood my situation. The IRS agent confirmed that only 85% of my UK disability pension is taxable in the US under the US-UK treaty, and walked me through exactly how to claim the foreign tax credit for the UK taxes I'd already paid. She even emailed me the specific forms and instructions afterward. Honestly shocked that it worked so well. Sorry for being so dismissive before!

Just wanted to add that if your French disability pension is based on a work injury (which it sounds like it is), the tax treatment might be different than a regular pension. Some foreign disability payments are actually exempt from US taxation altogether depending on how they're classified. Article 18(5) of the US-France tax treaty has special provisions for social security payments, which might include your disability benefit. It's worth checking the exact classification of your payment under the treaty. Also, don't forget about FBAR requirements if you have foreign bank accounts over $10,000 combined total at any point during the year. That's separate from income tax reporting.

Has anyone used TurboTax or H&R Block software for reporting foreign pensions? I'm wondering if they handle these situations well or if I need something more specialized.

I'm dealing with a similar situation with my Italian disability pension, and after reading through all these responses, I wanted to share what I learned from my tax attorney. The key thing that many people miss is that disability pensions from workplace injuries often have different treaty treatment than regular retirement pensions. Since your pension is classified as "rente d'invalidité professionnelle" (work-related disability), you'll likely need to use Form 8833 to claim treaty benefits under Article 18 of the US-France tax treaty. What I found helpful was getting the official French documentation that clearly states the nature and classification of your pension payments. The IRS will want to see that it's specifically a work-related disability benefit, not just a general pension. Also, definitely don't overlook the FBAR filing if your French accounts exceed $10,000. The penalties are no joke - I learned that the hard way when I missed filing for two years and had to go through the voluntary disclosure process. One more tip: keep detailed records of all French taxes paid on this income. You'll need those exact amounts for Form 1116 if any portion ends up being taxable in the US after applying treaty provisions.