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British Army Pension
Just started receiving a retirement pension from the British Army. Someone suggested IRS form 8833, so that it would not be taxable.
Is this correct? How do I complete this form?
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British Army Pension
You can enter your Foreign Pension either by creating a Substitute 1099-R or entering it under Miscellaneous Income.
If you also paid Foreign Tax on that income, please see the following steps from @TurboTaxKarenJ:
To report the foreign 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 the name of your county
- Enter description -XXX pension
- Enter Pension Income amount that you previously reported in another section of TurboTax (1099-R substitute)
- Enter your taxes you paid on your foreign pension in the box "Other income"
- Continue through the foreign tax credit screens until done.
Form 8833 would not apply in this case, but click this link for dertailed info from the IRS.
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British Army Pension
I have a Candian Forces Pension. In the past, I have entered this as Foreign Earned Income. Is there a reason you are suggesting Substitute 1099-R?
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British Army Pension
It is not foreign earned income. However, you can input it as other miscellaneous income and then enter the amount in the foreign tax credit section of TurboTax.
Some states will exempt a certain amount of retirement income for their taxpayers. If you live in a state that exempts some or all of it, you would want to indicate on the federal return that it is retirement income.
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British Army Pension
Do you know if a Canadian Forces Pension is considered a "Qualified Plan" or "Non-Qualified Plan"? Thanks
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British Army Pension
Treat it as a non-qualified plan, the same that U.S. military pensions are treated.
The term "qualified plan" refers to pensions that meet the requirements of Internal Revenue Code Section 401(a) of the Internal Revenue Service (IRS) and is thus eligible to receive certain tax benefits, unlike a non-qualified plan. As a foreign government pension, a Canadian military pension would not comply with U.S. tax code.
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British Army Pension
Awesome. Thanks!
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British Army Pension
I have a Canadian Forces Pension. If I decide to use a Substitute 1099-R for Canadian Forces Pension (see chain below) what would I put in Box 7?
Previously you had reminded me this is not earned income and in Georgia there is an advantage to note retirement income.
Thanks so much 🙂
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British Army Pension
Box 7 would be code 7 for a normal pension distribution. For more, see page 13 of About Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans.
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