I agree that that is an option, but I remember Kosetife explained some time ago that following that way the foreign pension will be reported on Line 8 of 1040 Tax Return Form as miscellaneous income instead of being reported on line 5b). For IRS it´s the same because the pension will be taxed in the same way. It will have the same tax impact.
The problem comes up for those like me that live in a State that offer pension exclusions if the taxpayer is older than 65 or disable and his or her total yearly income is below 150k. Why the problem? because the software system will allocate the pension on Line 26 of, in my case, NJ 1040 Tax Return Form instead of Line 20 a) for pensions, and I will not be allowed to get the exclusion.
As far as NJ is concern, the NJ Taxation Regulatory Service issued a Certificate on 12/28/2023 in response to my query on the matter indicating that foreign pensions may be excludable if the taxpayers meet the two conditions I mentioned above. So, NJ allows exclusion for foreign pensions. So, I have to report it on Line 20a) of NJ 1040 Tax Return Form.
With all that said: Can I do so by using TurboTax software online? If I follow the way kindly explained by Expert Dave1006 can I get my foreign pension reported at my State Level on Line 20a) for pensions or the system will automatically report it at State level on Line 26 as a miscellaneous?
Any comments will be very important for many taxpayers like me that are facing the same situation.
Thanks very much.
Betty
