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How do I report a UK P60 ( pension earnings) on Turbo tax?

Do I add UK pension earnings on my SS form.
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1 Reply
MarilynG1
Employee Tax Expert

How do I report a UK P60 ( pension earnings) on Turbo tax?

If you receive Foreign Pension Income, remember that this income is taxed the same as other income.

 

Enter your income in the Miscellaneous Income section, as follows:

 

  • Scroll down the income topics to 'Less Common Income', to 'Miscellaneous Income, 1099-A, 1099-C'
  • On the next page, scroll down to 'Other Reportable Income', say 'Yes' to 'Other Taxable Income'
  • On the next page, enter a description (UK Pension), and an amount (screenshot).

If you paid any Foreign Tax on your pension, you can get credit for this in the Foreign Tax Credit section, under Deductions & Credits. 

 

In the Foreign Tax Credit section, choose YES, you have reported your Foreign Income (UK Pension) and Continue.  You are then offered a choice between 'Deduction' and 'Credit'.  Most choose the credit, but you can try both options to see what is best for you.  If you itemize deductions, you may want the Deduction. 

 

If you choose Credit, on the next screen you will see 'this section will be ready January 18' so you can return after that date to finish.  If you choose Deduction, on the next screen enter a description (Tax on Foreign Pension Income) and the amount of tax you paid.

 

If you decide to claim a Credit, when you return to that section, you can enter the amount of your pension (you are not being taxed again) and the amount of tax you paid.  This is considered 'passive' foreign income. 

 

Here's more detailed info on Claiming the Foreign Tax Credit.

 

 

 

 

 

 

 

 

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