For W2s, we say no W2s. In the section for IRA/401K/pension plan withdrawals (1099R) under retirement plan/social security add 1099R. If it offers to import, select the option that says type it myself. In the payer address, select the foreign address and enter the address of the institution that is paying the pension in India. In the employer TIN, we entered 11-1111111. The form says if known, but I believe it didn't let us go forward until I entered the TIN, so I just entered all 1s. Ignore #7 (form-W2) in the 1099R and go to #8 (Form 1099-R). Convert the Indian pension rupees to USD using the current exchange rate. The pension gross should be from January to December. In India, the tax season is I believe April to March. Enter the gross USD that you converted in Gross Distributions (a). Under Distribution Codes (J) select/enter 7.
As move forward, if TurboTax asks you what type of distribution, select other distributions. For the retirement plan, choose non-qualified plan. Under "Do any of these situations applies to you", select I need to file a substitute 1099R.
Select form 4852 (if it doesn't come automatically). In 4852, on line 9 (substitute 1099R) enter
Pensions earned in Indian rupees are converted into US dollars using the
treasury department currency exchange rate. The pension is not taxable in the United States due to the United States - India tax treaty Article 19.
The pension is currently taxed in India.
Under line 10 (effort), enter
Since the entity is outside the United States, they do not issue form 1099R or W2.
I believe that covers most of the stuff my parents did to file the taxes for the last few years. I do not have all the information with me to give a clear step-by-step guidance.
Thanks, this thread worked perfectly for me to file my parents' taxes. The only issue I ran into for CA was that I had to print the state return. Did you run into same issue in your case? May vary from state to state, though.
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