Foriegn Spouse pension

[wschreiber1954]

I am married to a German citizen.  We are both completely retired.  How do I report her foreign pension, dividends and interest and taxes paid to Germany?

[DaveF1006]

It depends. According to the German/US tax treaty, your pension isn't taxed by the US. Since you have a US reporting requirement to report your worldwide income you may report it and then exclude it by using the treaty exemption. Here is how to report and offset it. 

1. Log into your account
2. Select Wages and income
3. Less Common income
4. Miscellaneous Income, 1099-A, 1099>start
5. Scroll to the bottom of the page to Other Reportable Income
6. Other taxable income, answer yes
7. Then give a brief description of the income and the amount listed. Call this German pension and then list the amount.
8. Now you should reach a summary page. here select add Another Miscellaneous Income item.
9. In the description field, Type in German/US Treaty Exemption and then enter the amount of the pension with a minus sign in front of it.

To report interest and dividends:

If reporting in Turbo Tax online, go to Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) located in the income section.  You will prepare an entry for 1099 INT and 1099 DIV.  Be sure to report the foreign taxes in Box 6 of the 1099 INT and Box 7 in the 1099 DIV. Since these are essentially mock forms, if it asks for a FEIN, type in 99-0999999. 

If you use TurboTax Desktop, go to Wages and income> Interest and Dividends. use the same procedure for recording your foreign taxes as I have described above.

Now to claim a Foreign Tax Credit for the tax you paid on the interest and dividends only:. 

1. Go to Federal
2. Deductions and credits 
3. Estimate and other taxes paid 
4. Foreign Tax Credit>start or revisit

One last note, you need to file form 8833 to take a treaty-based position for the pension income. You can download a copy of 8833 in this link.  You will need to attach this with your return and then mail it according to the filing and mailing instructions you will receive. You won't be able to efile this form.   Post Edited   Mar 20, 2025 at 1:30 PM 2 tags