How can I report Foreign Pension Income for which we don't have a 1099?

[LinaJ2018]

If you are a US citizen or resident, you are required to report worldwide income including foreign pension.  

To enter a 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 / Did you have any of these income in 2017 ?, 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.  See attached screenshot

As to the Federal ID, if you do not have the information, please 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. 

 Here is the alternative:

1.  After sign into your account, select Take me to my return 

2.  To your left, select Federal, from the top, select Wages & Income, scroll down to Less Common Income ( very                        last section on the screen) 

3.  Click on Show more drop-down menu, scroll down to Miscellaneous Income, 1099-A, 1099-C- Start 

4.  Select Miscellaneous Income- Other reportable income, select Start

[TMB20]

When you create a 1099-R substitute, Turbotax returns an error on the payer ID. Neither using all 9s or 1s work

[SusanY1]

@TMB20 - thank you for that information. Please use the alternate method of reporting as Miscellaneous Income-Other reportable income if you wish to e-file.   

[Garbanzor29]

I used the Turbo Tax IRS Free File version, and it took me a while to figure out how to solve this problem.

The following worked for reporting my foreign pension:

I selected FINANCIAL INSTITUTION (the default first choice), and

I chose TYPE IT IN MYSELF to enter the foreign pension information.

I then entered the foreign pension payer name, chose FOREIGN ADDRESS, and entered that, too.

For the Payer's TIN, I entered ALL ZEROES (00-0000000) and it worked!

It then required a distribution code, so I chose 7, which is the code for a "normal" distribution.

Only at the end of the process did it give me a screen that said, 

"Tell us if any of these uncommon situations apply."

The third choice there was "I need to file a substitute 1099-R."

And that took care of it!!

[juham2013]

Hi,

I see several people having difficulties with entering Foreign Pension income into TT.   Now, I see that you could do that by entering the numbers under Other Miscellaneous Income,  but all the choices I see there seem really odd and don't have anything to do with income such as this.   How should I report this income?

I received direct deposits into my foreign bank account on a monthly basis with the last payment having taken place in October 2021.

Awaiting sound advice and suggestions on this!

Thank you!

JJ

[juham2013]

Note that I am using TT Home & Business,  not an online version of TT.

JJ

[ErnieS0]

You can enter a foreign pension in the pension section of TurboTax. After you enter your info, you’ll need to prepare a substitute 1099-R @juham2013.

In CD/Download:

1. Type 1099-r in Search in the top right
2. Select Jump to 1099-r
3. Tap Add Another 1099-R in the bottom left
4. On Let Us Enter Your 1099-R, select I’ll type it in myself
5. On Tell Us Which 1099-R You Have, choose Form 1099-R and check the box I need to prepare a substitute 1099-R
6. Fill in all your info in US dollars. Do not enter any tax withheld in Box 4 as it is not US tax
7. You can claim a credit or deductions for foreign tax paid elsewhere

There is a more complete discussion at Where to enter foreign pension income and foreign.

Where do I enter the foreign tax credit (Form 1116) or deduction?

[juham2013]

Hi,

I do appreciate your response very much,  but I read elsewhere that when the financial institution in doesn't have a Federal ID you won't be able to file taxes electronically.  A "dummy" Federal doesn't work and unless you enter that ID, again, you can't file tax returns electronically which is the primary reason for me using Turbo Tax.

I am stumped here!

Sincerely,

JJ

[juham2013]

...when the financial institution in question, I meant to write....

[juham2013]

....a Dummy Federal ID........

[DaveF1006]

You can report this in the following manner.

1. Go to federal>wages and income
2. Less common income>miscellaneous income
3. Go to other reportable income
4. Enter a description of your foreign income and the amount
5. You will be able to file electronically reporting in this manner.

@juham2013