Deductions & credits

If the pension is Foreign Income, you will want to ensure it is entered as foreign income, not US Income.  This should allow the Foreign credit to be applied correctly.  

To enter Foreign Income in TurboTax, follow these steps:

1. Click on Federal Taxes 
2. Click Wages & Income  (If you're in TT Home & Business:  Personal > Personal Income > I'll choose what I work on)
3. Scroll down to the Less Common Income section, and Click Start next to Foreign Earned Income and Exclusion.  
4. On the screen Did You Make Any Money Outside the United StatMarkmark Yes and click Continue.  
5. On the screen What Form(s) Was Foreign Income Reported On? mark the selection that applies and click Continue. 
6. Continue through the screens, entering the requested information.

To enter foreign taxes paid, please follow these steps:
 

1. Click on Federal Taxes
2. Click Deductions & Credits (In TT Home & Business:  Personal > Deductions & Credits > I'll choose what I work on).
3. Scroll down to the Estimates, and Other Taxes Paid section.
4. Click on the box next to Foreign Taxes.
5. Click on the Yes box on the Foreign Tax Credit screen.
6. Enter the information requested on the screens.

For more information on the Foreign Earned Income Exclusion, see Foreign Earned Exclusion on the IRS website.