How to report a distribution from a foreign profit sharing plan in TurboTax?

[Adamax]

Hi team - 

In 2020, my previous foreign company (based in France) created and liquidated a profit sharing plan on my behalf, due to some back payments they owed me. 

As a result, I took a distribution for this plan in 2020, which I assume is taxable income in the US. 

I didn't receive a 1099-R form from the foreign profit sharing plan manager (despite me asking) so I tried to fill out a substitute 1099-R on Turbotax.

However, because I don't have a valid TIN for the foreign entity, I am not able to use that option in TurboTax.

Where should I report this income in TurboTax?

[DavidD66]

To report your foreign profit sharing plan payout, while working in your TurboTax Online return:

• Click on "Search" in the upper right hand corner of your screen.
• Type "1099r" in the search window and hit enter., then Click on "Jump to 1099r"
•  On the next screen, answer yes to "Did you have any of these types of income in 2020?"
• Click "Continue"
• Click on "I'll type it in myself"
• Check the box next to "I need to prepare a substitute 1099-R."
• On the next page, click "Continue"
• Fill in the boxes with your pension information.  For the Federal Tax ID, use "99-9999999" for Box 7, use Code 7.
• Select Yes when asked if you want to prepare a substitute Form 4852.

[Adamax]

Thank you for this. It seems that the 99-999999 TIN is rejected by TurboTax itself when I tried to input it manually in the substitute form 1099-R (i.e. when it comes to review the return, TurboTax highlights that mock TIN as invalid and requires me to change it).

It seems that the other alternative is to just report the lump sum distribution under 1099-MISC?  

[LinaJ2020]

Another option is to report as Other Income.  Here are the steps:

In TurboTax online,

• Sign back into your account, select Pick up where you left off
• 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

As long as you report it on your return as a taxable event, IRS will likely accept it though it's not reported on any tax forms like a 1099.  If you have paid taxes to both foreign and the US tax authorities on this distribution, the IRS allows you to claim a foreign tax credit on your US tax return.  To see how you enter in the program, click here:  Form 1116. It will show on line 1 Schedule 3 and line 20 of your Form 1040.