Foreign social security income is generally taxable on your US return, unless you are covered by a "Totalization Agreement". You can find a list of the countries where the US has these agreements HERE.
I agree, the descriptions and legalese aren't always easily understandable - and that's not just applicable to average seniors! This is particularly true of these Totalization Agreements - so if you're not certain if you're covered, you may wish to report the income as taxable and then include the tax paid for a foreign tax credit, or consult with an advisor familiar with foreign income tax matters. (Odds are that you are paying higher tax on the income in the other country than would be due on it in the US.)
Foreign withholding or taxes paid aren't entered on the substitute 1099, as that implies withholding that has been sent on your behalf to the IRS. Instead, you will leave the withholding number blank on the substitute 1099-R section and enter the tax you paid to the other country in the section for foreign tax credits in TurboTax.
Follow the instructions found HERE to enter the taxes paid for the foreign tax credit.
Please let us know if you have additional questions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
