You have two options to report this income on your U.S. tax return - you can enter your foreign pension income as a substitute form 1099-R OR you can enter the foreign pension income on Form 1040, Line 21 as "other income" or "foreign pension." (preferable)
To enter your foreign pension income as a substitute form 1099-R:·
- Click the Federal Taxes tab at the top.
- Select Wages and Income.
- Scroll down to the Retirement Plans and Social Security section (Use Jump to Full List, if the entire list isn't displayed.)
- Select IRA, 401(k), Pension Plans Withdrawals (1099-R). (See attached screenshot.)
- On the screen “Tell Us Which 1099-R You Have”, there is a box “I need to prepare a substitute 1099-R”. Click on that box and continue. Select the foreign address radio button when entering the payer's address.
To enter the foreign pension income on Form 1040, Line 21 as "other income" or "foreign pension", go to the "Less common income" section of Federal Taxes > Wages and Income, and select the very last option "Miscellaneous Income". If you choose this way, then you won't have to create a substitute Form1099-R, by filing Form 4852. However, the end tax result (in terms of United States tax rate and amount assessed) will be identical under both methods. This method will avoid the problems with the payer ID number.
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