How is foreign pension reported with no 1099 form?

[DaveF1006]

I can't provide you with a complete guide, but I can provide you with meaningful instructions.  First, don't file a substitute 1099 R. This is your most important step. Instead, follow these precise instructions.

1. Go to Federal on the left-hand menu. 
2. Select Wages & Income 
3. Locate "Less Common Income. 
4. Click Show More next to Less Common Income.
5. Select "Miscellaneous Income":
6. Find the last option in that list: Miscellaneous Income, 1099-A, 1099-C. Click Start or Revisit.
7. Choose "Other Reportable Income". Scroll to the very bottom of this new list and select Other reportable income. Click Start.
8. Enter the Description and Amount: Enter Foreign Pension received, and then the amount.

This will bypass the other hurdles you have experienced and will allow you to electronically file your return. Now, if you paid foreign taxes on your pension, you may be able to claim a foreign tax credit on your return.

1. Go to Federal > Deductions & Credits. 
2. Find Estimates and Other Taxes Paid and select Foreign Tax Credit.
3. Answer Yes to "Did you pay foreign taxes in 2025?"
4. When asked about the type of income, select General Category Income. 
5. Note: While some software defaults to "Passive," the IRS generally classifies pension income from past employment as "General Category" for Form 1116.
6. Add a Country: Select the country where the pension originated. 
7. Enter Income: You will be asked for the "Gross Income" from that country. Enter the USD amount of the pension again here. (This "links" the income to the tax credit; it does not double your income). 
8. Enter Taxes Paid: Enter the amount of foreign tax you paid, or that was withheld.
9. Finish out the section by pressing continue until you are done.

There will be a question in the interview asking you if you wish to take a simplified method or a general method regarding Amt. Since you are only reporting one category of income, choose simplified.

[TexasTea]

@DaveF1006 before advising people not to use a substitute 1099-R, you really need to check what state they are in, because some states offer preferential tax treatment for pensions (even foreign ones), that people won't get if they don't classify the income as a pension on the federal return.  If you search this forum, you'll find posts where people in states like New Jersey ran into that issue.  They couldn't report pension income as "other" income without suffering a material increase in their state income tax, because the income had to be on line 5b of the federal return in order to flow to the correct place in the state return.   A quick Google suggests that states with special treatment for pension/retirement income include Georgia, Delaware, Illinois, Iowa, Mississippi, Pennsylvania, Michigan, New Jersey, South Carolina, Virginia, Wisconsin and Utah, so I'd be very cautious about suggesting that anyone from those states enter a pension as "other reportable income".   The substitute 1099-R seems to be the only approach that ensures the correct tax treatment.

[Jscg]

I followed Davef1006 instructions and it is charging me $493 on my $1,603 total for the year pension i earned in 2025. Thats 30.8% ?? We are in the 22% bracket.

[DaveF1006]

To clarify, is this "charging" you on your federal or state return? If state, what state? 

@Jscg 

[Jscg]

Federal. Thanks. Not blaming you lol. Just stating what happened. It was same when filling under miscellaneous income. Don't know why they charge such high percentage. 

[DaveF1006]

It depends. A 30.8% effective tax on your $1,603 pension doesn’t necessarily mean you’re “in a 30.8% bracket.” It likely reflects how that income is taxed after credits/deductions and how it interacts with other income (e.g., Social Security taxation, phase‑outs, state tax, NIIT/IRMAA triggers, or witholding). Your marginal federal bracket (22%) is different from your effective rate on a single item.

More than likely, this amount is a result of more of your Social Security income being taxable because of the increase in income your pension generated. This added tax, combined with the tax your pension generated, may account for the $493 increase.

If you receive no Social Security, it may be an early withdrawal penalty if you are less than 59 1/2 years old and took an early distribution on your pension.