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rcmoore
New Member

How do i report income from United Kingdom pension and old age security pension?

 
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3 Replies
Fern
New Member

How do i report income from United Kingdom pension and old age security pension?

You should first make sure that you need to include this foreign  pension in your US income.  Many countries have tax treaty agreements that cover retirement payments.  For a complete list see https://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties---A-to-Z
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As a general rule, the pension/annuity articles of most tax treaties allow the country of residence  to tax the pension or annuity under its domestic laws. If this is true for your country, you would include the pension income in your US return.  However, you may not need to pay foreign taxes on this income.

In some cases, government pensions/annuities or social security payments may be taxable by the government making the payments. There also may be special rules for lump-sum distributions. You need to look at each treaty carefully.

To report the income from a foreign pension:

You will report this income in the Retirement Income section using a Substitute 1099 R.

Select Federal Taxes
Select Show More at Retirement Income
Select Start or Update at IRA, 401k, Pension Plan
Check Yes when asked if you had this type of income
Check I'll Type It Myself
Check I Need to Prepare a Substitute 1099-R
Select Yes when asked if you want to prepare a substitute Form 4852.

You will need to use 99-9999999 for the FEIN.

To report the taxes paid

Select Federal Taxes
Select Deductions and Credits
Select Show More at Estimates and Other Taxes Paid
Select Start or Revisit next to Foreign Taxes

The first two screens ask about investment income you may have had foreign taxes paid on.  Respond yes to these two screens.

How do i report income from United Kingdom pension and old age security pension?

I just checked in the treaties and I should be taxed on the country providing the Pension or Annuity.

Thank you for your support.

aFM

LinaJ2020
Expert Alumni

How do i report income from United Kingdom pension and old age security pension?

Generally, the UK pension is taxable to the US. 

 

In TurboTax online, here are the steps:

  • Sign in to your account and select Pick up where you left off
  • At the right upper corner, type in 1099r, then Enter
  • Select Jump to 1099r
  • Follow prompts
  • Next screen, Choose your bank or brokerage, select I'll type it in myself
  • 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.  

As to the Federal ID, UK pensions often do not have the ID number.  Please try entering nine 9s.  If electronic errors occur due to 1099-R data entry, enter the pension under Miscellaneous income, see instructions below. As long as the IRS has the pension reported and included in total income, it is not problematic.  Here are the steps: 

  • To your left, select Federal
  • From the top, select Wages and Income
  • Scroll down to last section -Less Common Income -select  Miscellaneous Income, 1099-A, 1099-C- Start 
  • Next screen, scroll down to Other Reportable Income- Start
  • Follow prompts

@aferiamo53

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