Deductions & credits
1. The program is much better this year with handling the 1099-R and allowing you to create a substitute 1099-R.
2. Correct. "Absent application of a particular treaty provision, foreign social security pensions are generally taxed as if they were foreign pensions or foreign annuities." from IRS pension and annuity distributions.
3. NJ does tax the income and offer the exclusion where allowed.
4. Correct. Here is my fake substitute 1099-R from federal as shown in the NJ state section
Provided you correctly answer the questions, the 1099-R will flow through to NJ. If you qualify for the pension exclusion in NJ, the program will handle it for you.
5. Yes, or disabled.
6. The best way to enter the foreign income is on a substitute 1099-R. If you have a foreign pension, please see my post here.
