I agree 100 % because IRS is clear stating that foreign sourced social security pension must be tax treated like foreign pension or foreign annuities, meaning to say are fully taxed unless a bilateral totalization agreement between the foreign country and the US exists stating otherwise .
My query is that with that in mind for the IRS is indistinct that be reported : (i) on line 5b) as a pension , (ii) on line 6b ) as a social security or (iii) on Line 2 Schedule - line 10, 8z as miscellaneous / other income , because is 100 % taxed the same in the three options .
The point is that if it’s reported on line 5 b) or 6 b) it’s necessary to inform the Form 1099 R for the first or Form xxx for the second and most of the foreign Payor don’t issue such documents . This could create confusion to the IRS because on top of that by filing online TurboTax system doesn’t allow to attach or enclose an explanatory note to clarify the matter .
Furthermore many of us that receive a monthly foreign social security pension do not get it through any distribution because it’s a direct payment from a foreign government agency similar to US Social Security Administration .
Thus, the easiest and less bureaucratic way to report it , is as Miscellaneous / Other Income as I said above because it can be written “ Foreign Social Security Pensión from xxxxx” including instead of xxxx the country name .
After all this I said , can anybody let me know how to fill out Form 1116 related to Foreign Tax Credit because indications online states that one must “Jump to link it” but I don’t see in my computer screen and on my cell screen either from where I must to jump . I don’t see the way to access to such Form 1116 , it’s no clear enough in TurboTax system .
Furthermore is not clear either to find Form 8962 related to Advance Premium Tax Credit to fill it out and also Schedule B (Form 1126) related Foreign Tax Carryover Reconciliation Schedule in order to carryforward the unused Foreign Tax Credit of previous years and to use it now in 2024 Tax Return .
Anybody that can elaborate on this will be appreciated and useful for all of us in this TurboTax community . Thanks in advance .
