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Deductions & credits
You report the pension plan distribution and then work through the Foreign Taxes section to see if you qualify for a foreign tax deduction or credit. You do this is the Estimates and Other Taxes paid section in the Deductions and Credits area of TurboTax, then choose Foreign Taxes to assign your foreign income to a country and enter the tax paid. To the extent you have US taxes on your foreign income, you will get a credit for those taxes on your US tax return. You can take a deduction or credit for your foreign taxes paid or accrued on income, the credit is normally better.
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March 17, 2025
11:14 AM