British Army Pension

Forum|Forum|6 years ago
January 27, 2020
8 replies
68 views

Just started receiving a retirement pension from the British Army. Someone suggested IRS form 8833, so that it would not be taxable.

Is this correct? How do I complete this form?

Not A Product Question

MarilynG

Level 15

You can enter your Foreign Pension either by creating a Substitute 1099-R or entering it under Miscellaneous Income.

If you also paid Foreign Tax on that income, please see the following steps from @TurboTaxKarenJ:

To report the foreign tax paid on your pension for foreign tax credit:

Enter foreign tax credit in the search box at the top of the page and click the Jump to link
Click 'Yes" you paid foreign taxes
Click through the screens regarding foreign interest and dividends
Click yes that you have reported all your foreign income already in TurboTax
Click that you want to take a credit
Answer question about the Simplified Limitation Election
Choose income type for pension - it will be General category income
Add the name of your county
Enter description -XXX pension
Enter Pension Income amount that you previously reported in another section of TurboTax (1099-R substitute)
Enter your taxes you paid on your foreign pension in the box "Other income"
Continue through the foreign tax credit screens until done.

Form 8833 would not apply in this case, but click this link for dertailed info from the IRS.

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JohnPG

Level 2

I have a Candian Forces Pension. In the past, I have entered this as Foreign Earned Income. Is there a reason you are suggesting Substitute 1099-R?

ToddL99

Alumni - Intuit

Do you know if a Canadian Forces Pension is considered a "Qualified Plan" or "Non-Qualified Plan"? Thanks

Treat it as a non-qualified plan, the same that U.S. military pensions are treated.

The term "qualified plan" refers to pensions that meet the requirements of Internal Revenue Code Section 401(a) of the Internal Revenue Service (IRS) and is thus eligible to receive certain tax benefits, unlike a non-qualified plan. As a foreign government pension, a Canadian military pension would not comply with U.S. tax code.