A foreign pension can be entered using a substitute 1099-R or by entering it as other income and then taking the foreign tax credit. This is well documented in this community. What hasn't been noted though is the fact that the foreign tax credit using the "other income" method will be less than the actual foreign taxes paid. The substitute 1099-R method will apply the full amount of foreign tax paid on the 1040. In my case there was a $200 difference in credited taxes. The 1099-R method is definitely preferable as long as you don't mind mailing your return. Trying to enter a Payer Id using a combination of 9's and 0's on a substitute 1099-R does not usually work if you're attempting to file your return electronically.
