I am a US citizen - I have a UK military pension and a UK employee pension paid directly in the UK. I am paying a small amount of UK taxes on the pension because they are slightly over my allowance. I also received a tax-free pension lump sum. Under the UK/US tax treaty article 17 I understand that the pension payments are not taxable in the US so I report the pension payments on 1040 and then add a negative entry to subtract them. Is this correct? The tax-free lump sum would not be reported. I also saw from a Turbotax answer to supply a form 8833 to explain the negative entry. Is this correct?
