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Thanks for your follow up
I followed the 6 steps and reported the foreign soc sec amounts (for two countries) and gave explanations of currency exchange rates used, i.e. IRS yearly average exchange rates. This year my taxes increased about $600. The amounts from this year and last year are basically the same. I does not seem that the soc sec is taxed differently than regular income when filing them in this spot. Last year I filled out the 1099R forms as well, but had to print them and then fill out addresses and organization numbers by hand afterwards, as they did not fit. Not an option this year and the Turbo Tax page refuses to "Continue" if the numbers and addresses does not fit into the spaces allowed. Still hoping to find another way.
Instead of reporting these as 1099R's, I would suggest reporting this as other income so that the income is reported correctly on line 8Z of Schedule 1 and the 1040. Here is how to report.
To report:
As far as the increase in your taxes, there may have been a change in the exchange rate between the previous year and this year.
@Hg2164
Best answer if it works. I will try it now
Any links to the same subject matter for California? Specifically, I would like to know if or how foreign pension from Europe needs to be reported in California and also if there are any exceptions. Thank you in advance.
My wife and I are both over 70 and live in Maryland full-time. She started receiving a disability pension from the Israeli police. They don't send us anything like a 1099-R. How do we report this? Is any part tax exempt, either federal or Maryland? Thanks.
Yes, your wife can exclude her disability pension income from Israeli police for any personal injury or sickness resulting from the foreign government services. Please see IRS Publication 525 - Section Military and Government Disability Pensions for more information.
Because the disability pension income is not included in the federal AGI and is not treated as an addition to the income per Maryland Form 502 instructions, you don't need to report the income on the Maryland tax return. Please see Maryland Form 502 instructions - additions to income section for more information.
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