Is a distribution from a foreign pension (lump-sum) subject to IRS early withdrawal penalty?

[valleybuy]

Can you please suggest what do I enter as Payers Federal  ID number?

I didn't get any statement or 1099 from Foreign pension fund that matured?

It shows under line Sch 1/8z 

[valleybuy]

Can you please suggest what do I enter as Payers Federal  ID number?

I didn't get any statement or 1099 from Foreign pension fund that matured?

It shows under line Sch 1/8z 

[Vanessa A]

Where are you being asked for a payer ID?

If you follow the steps that DaveF above listed, you do not need to enter a payer ID.  It sounds like you did it correctly since it is showing on Sch 1/8z.
 

[valleybuy]

Right, but when I enter other reportable income it doesn't create a 1099-MISC entry in Sch 1 and PA State return is not showing under as taxable income. Is that the way it should be, then I will enter as other reportable income

[DaveF1006]

Yes, this is the correct way to report this so that Pa doesn't tax this income. PA is one of 17 states that do not tax pensions.

[valleybuy]

Thanks, will do. Appreciate the inputs

[valleybuy]

Should this pension/retirement income with no 1099-R be reported on From 1116 Part 1 line 3d Gross foreign source income?

There is 0 Foreign tax credit as it was tax free withdrawal in India

[DaveF1006]

Since this was a tax free withdrawal in India, this pension/retirement income isn't reported in Form 1116 as there isn't foreign tax credit to be claimed.

@valleybuy 

[valleybuy]

thanks and same also hold true for  an Dummy 1099-INT created with Foreign Interest income but no foreign tax paid? this will not be added in gross foreign income?

[DaveF1006]

No.  This would also not be reported on Form 1116 because there is no Foreign Tax Credit to be claimed. You do need to report the interest on your tax return on a dummy 1099 INT as US income, but it isn't reportable on Form 1116.

[valleybuy]

when I called the number mentioned in turbotax, PA help resources told me consider this retirement plan distribution and hence taxable if under 59 years. I told them that I paid premium every year for 7 years and this plan matured 20 years later and took retirement distribution

The difference in distribution and cost is taxable. Do you know where I need to enter this Other reportable income from federal into PA state?

@DaveF1006 

[DaveF1006]

Yes. Enter this as less-common income.

1. Log into your account
2. Select Wages and income
3. Less Common income
4. Miscellaneous Income, 1099-A, 1099>start
5. Scroll to the bottom of the page to Other Reportable Income
6. Other taxable income, answer yes
7. Then give a brief description of the income and the amount listed. Here call this Taxable Distributions From a UK pension and then the amount.

This'll be reported on the federal and PA state return as well.

@valleybuy 

[valleybuy]

it carried through in 1040 line 8z but not in PA state, do I have to enter it in form mode as the interview mode there is no way to add Other income for PA state

@DaveF1006 

[DaveF1006]

I would like an opportunity to look in your file to see how you may report this and declare your income to the state of PA. Apparently, TurboTax is treating this as pension income that is not taxable in PA but this doesn't apply in your case.

To look at this in detail, we would like to see a diagnostic copy of your return. The information in this file is a sanitized copy meaning there is no personal information, only numbers so that we can troubleshoot in depth, check for calculation issues, and to see how certain items are applied. Here is how to order. 

For Turbo Tax online, go to tax tools>tools>share my file with agent.  When this is selected, you will receive a token number.  Respond back in this thread and tell us what that token number is. 

If you use the desktop version, go to the black stripe at the top of the program, click on online, and then select send tax file to agent. Let us know what the token number is.

@valleybuy 

[valleybuy]

@DaveF1006 

13563578303866269-73883470