It depends. These treaties are nebulous at best but in reading over the US/Denmark tax treaty I do see a reference in the treaty in Article 18 Section 2. In this article it states, "Notwithstanding the provisions of paragraph 1, payments made by a Contracting State under provisions of the social security or similar legislation of that Contracting State to a resident of the other Contracting State or to a citizen of the United States shall be taxable only in the first mentioned State" The first fore mentioned state that is mentioned here is Denmark.
Also, if you look at Article 18 Section 1, "Except as provided in subparagraph b), pension distributions arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in the State in which they arise. This would be Denmark.
Based on the treaty provisions, I would file form 8833 excluding both the Danish Social Pension and the Danish ATP pension based on these treaty positions. Here is a form 8833 for you to download and fill out. Make sure that you list the treaty based position and the Article numbers and sections that I just mentioned above. In fact, you may wish to quote the treaty position word for word as it appears in the treaty under Article 18 sections 1&2.
Unfortunately Turbo Tax does not support form 8833. You will need to download the form and then include this with your tax return. You will not be able to electronically file your return so you will need print and mail your return. Turbo Tax will give you the complete mailing and filing instructions when you choose the option to mail your return.
In addressing the last question, you will not file a Form 1116 to claim the foreign tax credit since you are not declaring your Danish Social Pension on your US return because of the terms of the treaty. I hope I addressed your questions and concerns.
@haraldsted-aol-c
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