Yes you need to report all worldwide income. Since it is not taxable in the Philippines, you will not receive a tax credit.
Sometimes income is exempt under a tax treaty so you can subtract it back out. I don't believe you qualify under the Philippines - Tax Treaty Documents. I am not a tax treaty Philippines expert so you may want to read through it for your situation.
For entering the form:
- Open your return to federal income
- Select 401k, pension, 1099-R
- Select I'll type it in myself
- Continue
- Select Form 1099-R
- Continue
- Enter the name and address of the payor
- Federal ID number, enter the dummy code 23-1234567
- Enter gross and taxable distribution in USD, put the entire amount in both boxes regardless of actual taxable amount in this spot
- Box 7 - Select a code - Enter distribution code 7 for normal distribution
- Continue
Subtract out the income, if nontaxable:
1. Miscellaneous Income, 1099-A, 1099-C, Start
2. Scroll to the bottom
3. Other reportable income, Start
4. Other taxable income?
5. Select YES
6. Description Treaty income
7. Amount, enter your negative amount
8. Continue
[Edit 4/1/2024 8:15 am PST] @Z_b-N324
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