@MVLUSnr ,
For the Govt. Pension:
What you are trying to here
(a) recognize the pension amount as part of your world in come ( US persons are taxed by the US on world income irrespective of where the source is )
(b) Recognize the Tax treaty article and therefore exclude this income from US taxes.
The ideal way to do this would be to include this as "other " income" -- you need it to show up on Schedule-1 with notation " Foreign Govt. Pension India " and the amount. Then on the adjustment section of Schedule-1 under "other" --- ( Party II, line z) -- Other adjustments, the same pension amount with notation --- "Article 19 of US-India Tax Treaty".
However, because of the way TurboTax has been implemented , the only way to achieve this is to enter under "other income " -- once the pension full amount as a positive number with notation " Govt of India Pension" and then another with the same number as negative amount with the notation " Excluded per Article 19 of US-India Tax Treaty ". It is a clutzy way but it does the job.
On your investment income from India :
You need to enter these incomes under the proper category , just as if these were domestic sourced -- Under personal income tab, then " I will choose what I work on " then from the drop down list of income categories.
If India taxes these incomes ( per your settled ITR ) , then you have to allocate foreign taxes paid on these incomes ( doubly taxed ) and claim foreign tax credit per the "elimination / mitigation of double taxation " clause of the tax treaty.
This would mean ( depending on the amount of tax and your filing status ) you may have to file a form 1116. You access this under Deduction and Credits tab and selecting " I will choose what I work on " and then down towards the end " Foreign Tax credit". Note that the credit allowable for the tax year is the lesser of US tax on this income and that actually paid to India.
Does this help ? Do you need more help on this ?
