I have been trying to understand out why most responses indicated that the UK/British state pension (aka OAP) was reported using 1099-R instead of being included in the SSA-1099 which is how payments from the Canada Pension Plan is handled.
You mentioned the following
Also, although taxable income from US Social Security is normally capped at 85% of the income received, that 85% does not apply to a UK state pension. It is fully taxable.
This tidbit is the only time I have seen where I have seen an explanation of how taxation of US Social Security is handled as compared to most other foreign pensions. The statement 'It is fully taxable' explains why the UK state pension should be captured in a substitute 1099-R or as miscellaneous income and NOT as part of the SSA-1099.
