Is a distribution from a foreign pension (lump-sum) subject to IRS early withdrawal penalty?

[DaveF1006]

I reviewed your return and found a couple of things.

1.  I looked at Schedule 1 and noticed that you reported $745 as a taxable refund offset. Unless you itemized deductions in 2022, you don't need to declare this as income.  You may remove this unless you itemized deductions in 2022 and claimed the refund as a itemized deduction in 2022.
2. Secondly, you are correct. The information regarding the pension wasn't recorded in the PA return. You will need to add this to your PA return.

• Open up your PA return.
• Go to Income and Adjustments
• Go to Miscellaneous Income Summary
• Select add another payment
• When it asks for type of income, indicate other.
• Then list the same amount ($5119) for federal and PA.

As an FYI, if the taxable refund offset is taxable because you itemized deductions in 2022, this would need to reported here as well.  For some reason, Federal Schedule 1 income did not populate into the PA return.

@valleybuy 

[valleybuy]

@DaveF1006 

Appreciate going the extra mile

For PA. Did you mean "Miscellaneous compensation summary" and not "Miscellaneous income summary"

Agree on the $745 that's way it was non reportable  , I was checking on 1099-g as its different boxes

Is there any need to attach letter stating that I didn't not get 1099-R for foreign retirement income so the need to file Other income,  or can it be noted in some box?

[DaveF1006]

Yes, it's the same section and it may be worded a little differently in each of our programs. You don't need to attach a letter saying you didn't receive a 1099R and it doesn't need to be noted. 

@valleybuy