Your UK pension distribution will be taxable in the US (please see below for some articles that may be of assistance) however, you can claim a foreign tax credit for the tax you paid in the UK to offset double taxation.
You also will probably have a Form 8938 tax filing requirement to report your specified financial assets. You can file this form with TurboTax.
https://www.irs.gov/pub/irs-pdf/f8938.pdf
https://www.irs.gov/pub/irs-pdf/i8938.pdf
To report your UK pension income:
To enter foreign pension in TurboTax online program,
you will need to create a substitute form 1099-R.
Here are the steps:
1. Sign into
your account and select Take me to my
return
2. At the
right upper corner, type in 1099r,
then Enter
3.
Select Jump to 1099r
4. On
screen, Your 1099-R, answer Yes and select Continue
5. Next
screen, Choose your bank or brokerage,
select I'll type it in myself
6. On the
screen Tell Us Which 1099-R You Have, check
the box
I need to prepare a substitute 1099-R and
follow the prompts.
As to the Federal
ID, if your foreign issuer does not have the ID number, try entering nine 9s.
If electronic errors occur due to 1099-R data entry, enter the
pension under Miscellaneous income, see
below instructions. As long as IRS has the pension reported and included
in total income, it is not problematic.
1. In the
program, from the top, select tab Federal
taxes / Wages & Income
-Less Common Income ( very last
section on the
screen)
2.
Select Miscellaneous Income , 1099-A,
1099-C- Start
3.
Select Miscellaneous Income- Other income not already reported on a Form W-2 or
Form 1099-
select Start to
information
To report the UK tax
paid on your pension for foreign tax credit:
- Enter foreign tax credit in the search box at the top of the page and click the Jump to link
- Click 'Yes" you paid
foreign taxes
- Click through the screens
regarding foreign interest and dividends
- Click yes that you have
reported all your foreign income already in TurboTax
- Click that you want to take a
credit
- Answer question about the
Simplified Limitation Election
- Choose income type for
pension - it will be General category income
- Add UK as the county
- Enter description -UK pension
- Enter Income amount that you
previously reported under UK pension income
- Enter your taxes you paid on
your UK pension in the box "Other income"
- Continue through the foreign
tax credit screens until the program says you are Done.
https://www.exfinuk.com/US-taxation-UK-pension-funds
https://www.goldinglawyers.com/u-s-taxation-on-u-k-retirement-pension-irs-offshore-reporting/
