You need to report the gross distribution as income on your mock 1099-R. You can provide more information regarding the distribution in the explanation section.
You don't need to add the negative amount of the gross distribution in the miscellaneous income since the double taxation relief is handled through a foreign tax credit or foreign income exclusion. You should report foreign tax paid in the U.K. in the foreign tax credit section by following the steps below:
1) After signing into your account, select Take me to my return
2) At the right upper corner, in the search box , type in foreign tax credit and Enter
3) Select Jump to foreign tax credit
4) Start with screen Foreign Taxes and select Continue to follow the prompts.
Please enter nine 9s in the ID to avoid E-file errors.
You should submit your state tax return to report foreign pension income.
