1. You would not report the income under foreign earned income exclusion as that is just for foreign wages.
You would not use the foreign paid tax credit in your case. Pension from India is taxable either in the US or in India, but not in both countries. This is based on the tax treaty between the US and India. You would have to claim the tax treaty exemption in the country where the pension would not be taxable.
US/India Tax Treaty
You would report the pension on form 4852, substitute for form 1099R.
If your pension is taxable in the US, you enter the full amount as taxable amount.
If your pension should be taxable only in India, you would then enter Zero as the taxable amount ad write "Us India tax treaty Article XX" as explanation.
2. He would not need to report foreign tax credit as his pension income is only taxed in the US or India but not both
3.The premium tax credit program uses the federal poverty line as a basis for income range for credit eligibility. The range is 100 percent to 400 percent of the federal poverty line amount for the size of your family for the current tax year. For example, an individual earning between $12,490 and $49,960 in 2019 meets income criteria to qualify, while a family of four qualifies with household earnings between $25,750 and $103,000 (as of publication). Even if your income indicates eligibility, you must meet the other qualification criteria as well.
What is the Premium Tax Credit? I do not know
IRS Eligibility for the Premium Tax Credit
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