My wife gets a retirement pension from latvia. she pays latvia taxes on it. Do we need to claim it as income and pay tax here too?

[allanandtatjana]

Is pension from Latvia taxed here too?

[KarenJ]

Treaty determination is beyond the scope of our work, however, there is a treaty between US and Latvia and Article 18 provides information on where the pension is taxable.  You would need to have someone knowledgeable in interpreting the treaty to determine if this relates to your wife's pension.

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

You can report the pension income as a substitute 1099-R under pensions in TurboTax.  In the search box at the top of the screen, type in pensions.  Then click the Jump to pensions link.  Click that you are preparing a substitute

1099-R.

To claim foreign tax credit on this income:

To report the Latvian tax paid on your pension:

1. Enter foreign tax credit in the search box at the top of the page and click the Jump to link
2. Click 'Yes" you paid foreign taxes
3. Click through the screens regarding foreign interest and dividends
4. Click yes that you have reported all your foreign income already in TurboTax
5. Click that you want to take a credit
6. Answer question about the Simplified Limitation Election
7. Choose income type for pension - it will be General category income
8. Add Latvia as the county
   
9. Enter description - Latvian pension
10. Enter Income amount that you previously reported under Latvian pension income
11. Enter your taxes you paid on your Latvian pension in the box "Other income"
12. Continue through the foreign tax credit screens until done.