I receive pension income from India. Where do I enter this amount in Turbotax interview? Do I convert the amount to US $ and if so at what rate?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

I receive pension income from India. Where do I enter this amount in Turbotax interview? Do I convert the amount to US $ and if so at what rate?

I am a US permanent resident, retired person with no other US income.
3 Replies
Level 7

I receive pension income from India. Where do I enter this amount in Turbotax interview? Do I convert the amount to US $ and if so at what rate?

You would not use the foreign paid tax credit in your case. Pension from India is taxable either in the US or in India, but not in both countries. This is based on the tax treaty between the US and India. You would have to claim the tax treaty exemption in the country where the pension would not be taxable.

https://www.irs.gov/pub/irs-trty/india.pdf

You would report the pension on form 4852, substitute for form 1099R.
If your pension is taxable in the US, you enter the full amount as taxable amount.
If your pension should be taxable only in India, you would then enter Zero as the taxable amount ad write "Us India tax treaty Article XX" as explanation.
New Member

I receive pension income from India. Where do I enter this amount in Turbotax interview? Do I convert the amount to US $ and if so at what rate?

Hello,

You should convert into USD using the following rate of 66.768 Rupee for 1 US $ (average for 2015). This is in the IRS table Yearly Average currency Exchange changes.

About the pension, it should be included in Other Taxable income (under Wages & income). If you have paid taxes in India, then you should also report them as passive income and deduct the taxes paid under Foreign Tax Credit section. 


Level 7

I receive pension income from India. Where do I enter this amount in Turbotax interview? Do I convert the amount to US $ and if so at what rate?

You do not report taxes as passive income.
Dynamic Ads
v
Privacy Settings