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dimis1974
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How do I declare the retirement pension my wife receives from overseas? May we deduct the taxes paid in the foreign country related to this pension payments?

 
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How do I declare the retirement pension my wife receives from overseas? May we deduct the taxes paid in the foreign country related to this pension payments?

You will enter your wife's foreign pension as "Other Income."  (Instructions are below.)  

The taxes paid may be deducted as a Schedule A itemized deduction or claimed for Foreign Tax Credit on Form 1116.  I have included a link to the IRS' discussion of this choice here: https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit-choosing-to-take-credit-o...

To get to Form 1116,  type "foreign tax credit" in the Search box in the upper right of your TurboTax return, then click on the "Jump to foreign tax credit" link.

To enter your foreign pension on your return, follow the instructions below:

  • Choose the Federal return and the Wages & Income tab.
  • Scroll down to Less Common Income and Show more.
  • Choose Miscellaneous Income, 1099-A, 1099-C.
  • Choose Other Reportable Income and say Yes.
  • Even though the screen says "Do not enter income reported on Form 1099-MISC", this is where you will enter the description "Foreign Pension" the amount you received, and who received it, if necessary.
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