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Level 2
posted Feb 17, 2023 6:17:22 PM

My husband and i receive retirement income from the UK. They do not send us a form. Turbo tax does not provide an option to enter this. How do I enter it?

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2 Replies
Expert Alumni
Feb 17, 2023 6:28:11 PM

From @ToddL99

 

You have two options to report a foreign pension: 

 
Option 1 (Best choice): You can enter the foreign pension income on Form 1040, Line 8 as "other income" or "foreign pension."   
 

You won't need a  Payer ID (FEIN), state, or zip code with this approach.  

 

The IRS wants the pension reported as income - unless your pension receives special tax treatment, it is perfectly OK to report it as Miscellaneous Income.  

 

To make entries on Line 8, go to the Other Reportable Income interview, the very last interview in Wages and Income (Federal Taxes tab > Wages & Income  > Less Common Income > Miscellaneous Income).  

 
In TurboTax Online, enter "other reportable income" in the Search Box and then select "Jump to Other Reportable Income".  

 
If you choose this way, then you won't have to create a substitute Form 1099-R, by filing Form 4852 and you won't encounter e-file errors over the Payer ID.   
 

However, the end tax result (in terms of the United States tax rate and the amount assessed) will be identical under both methods.  

 
 

Option 2: Prepare a Substitute Form 1099-R and a Form 4852 to report that foreign pension on your tax return.  

 
In the Retirement Income interview for Pension Plans (Form 1099-R), check "I need to prepare a substitute Form 1099-R" and follow the instructions in the interview.  

Level 2
Feb 18, 2023 8:40:24 AM

Thank you so much!. I had no trouble reporting this in previous years, but Intuit keeps making it more difficult to do simple things. Sigh.