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Deductions & credits
The best way is to enter the foreign pension as a substitute form 1099-R:
1. Click on Federal Taxes.
2. Select Wages and Income.
3. Select “I’ll choose what I work on”.
4. Scroll down to Retirement Plans and Social Security”.
5. Select “IRA, 401(k), Pension Plans (1099-R).
6. 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.
For electronic purposes, the two letter state ID and zip code may be left blank, it should be fine for electronic filing. As to the Federal ID, foreign pensions often do not have it, try entering nine 9s.
If electronic errors occur due to 1099-R data entry, please enter the pension in Miscellaneous income. As long as IRS has the pension reported and included in total income, it is not problematic. If your pension receives no special tax treatment, you are fine to report it in the miscellaneous income.