Should I enter a Canadian NR4 with income code 39 as 1099-R or SSA-1099.

[bkeating1]

The current recommendation is to enter my NR4 (income code 39) as SSA-1099 but 10 years ago Turbo Tax Pro advised to use 1099-R. Can you confirm which should be used since I don't think that the tax treatment has changed. 

Current recommendation https://ttlc.intuit.com/questions/3756968

[CapB · Accepted solution]

Yes, enter Canadian Form NR4, code 39 as 1099-R pension benefits.

 The IRS publication 597 you referenced on page 3, column 1, that: "Pensions do not include social security benefits." 

To add Canadian Form NR4, code 39 as if it were Form 1099R (retirement income):

1. Sign In to TurboTax Online.

2. Select "Take me to my return"

3. Select the "Search" or "Help" icon.

4. Type "1099-R" and select "Jump to 1099-R" 

5. Select "Add a 1099-R" and continue through the interview questions.

To add the foreign taxes paid :

1.  Click “Federal Taxes” tab 
2.  Select "Deductions and Credits" 
3. Scroll down to "Estimates and Other Taxes Paid" 
4. Press "Start" or "Revisit" next to "Foreign Taxes" to begin the interview.

1.  enter the foreign taxes paid to Canada on your NR4.

Remember to convert the Canadian funds to US $ before entering into TurboTax.

[bkeating1]

Thank you. I have been entering it as a 1099-R for many years with a Canadian company ID number but this year the system will not let me file. It keeps giving me an error and will not allow me to over ride it. Can you let me know how to proceed?

[CapB]

What is the error message?

[bkeating1]

It responds with "Payer's I.D. is invalid for electronic filing". I have electronically filed for at least 6 years. This is the first year that it won't let me. Even if I leave it blank it still gives me an error asking for an ID. Has the system been changed?

[lbarnes3181]

Hello bkeating1, I have an NR4 for the first time ever.  I figured I had to enter it as a sub 1099-R, and use the US Currency conversion.  However, when you do this, do you also put in the tax withheld on the sub 1099-R?  And do you also file for the Foreign Tax Credit?

[CapB]

foreign tax credit input added above.

[CapB]

To add Canadian address: To add or edit a W-2 with a Canadian address:
Click Federal (or Personal)>Wages & Income
• Select "Edit/Add" on the "Your income" summary screen
• To add a new W-2: scroll down and select "Add a W-2 for ..." 
• To update the W-2 address: press "Edit" on the "Here's your W-2 info" screen 
• Open the pulldown menu under "Address type" and select "Foreign Address"
• Click on the pulldown menu under "Country" and select "Canada"
 Press "Continue" when finished.

[lbarnes3181]

So, I don't add the tax withheld on the sub 1099-R????  And I did do this, but I don't think I'm doing the foreign tax credit correctly?  when I'm done with it, it has a zero amount.

[beaniejay6]

What do you enter as payer ID number on 1099-R since it keeps asking for one?  As for Foreign Tax credit can you confirm you need to put the taxes for pension before the ones for dividends due to something with the order of multiple 1116 forms are handled in TT so the credit is calculated properly

[lbarnes3181]

I didn't do a 1099-R, after a ton and ton of research, my particular NR4 could be filed as miscellaneous Income and that made the 1116 much easier to do. As for the second part of your question, I'm not really sure, hopefully you can find an answer on that.

[darylwalker1]

I am unsure how to enter an NR4 Code 39 as a 1099-R in TurboTax.  For example, the the 1099-R Box 7 is to "Select a code(s) that matches Box 7 of your 1099-R".  What do I input there?  7?  Thanks.

[AmyC]

Box 7 Code 7 is for regular retirement received on a regular basis.

[jenniebrin]

I did exactly this.  The problem for me is that the IRS is rejecting the return because the payer identification number doesn't match IRS records.  Turbo Tax adds a hyphen in the number that is not present on the NR4 form.  I've been unable to contact anyone for help.  Suggestions?

[ThomasM125]

You can enter the income as "Other Income" if you don't file a tax return for a state that has special treatment of pension income. You can do so in TurboTax as follows:

1. Go to the "Federal" section of TurboTax

2. Click on "Income and Expenses"

3. Find "Less Common Income" and choose the last entry "Miscellaneous Income"

4. On the next screen, "Miscellaneous Income" choose the last entry "Other Reportable Income"

5. Enter a description for your entry, and enter the taxable amount you want to include