How can I bypass error checking on a dummy payer TIN on Form 4852/1099-R. I have entered 9 x 9s. This is to enter UK pension income. Successful in 2017, but not now.

[KittyM · Accepted solution]

The IRS has changed the way they want you to report a Foreign Pension, since - as you have discovered - a "dummy" TIN will no longer work.  Therefore, you will now enter your foreign pension as "Other Income."  To enter it on your return, follow the instructions below:

• Choose the Federal return and the Wages & Income tab.
• Scroll down to Less Common Income (you may have to choose Add more income and See more income to view this topic) and Show more.
• Choose Miscellaneous Income, 1099-A, 1099-C.
• Choose Other Reportable Income and say Yes.
• The screen says "Do not enter income reported on Form 1099-MISC".  This is where you will enter the description "Foreign Pension" and the amount you received.

[MartinS]

Excellent solution.  Bonus:  CA now accepts the return electronically.  In prior years a substitute 1099-R prevented this

[KittyM]

My pleasure to assist you.  I'm glad  you don't have to mail your return!

[X068119]

Hi, If I enter the foreign pension as other income then my NJ state return does not recognize it as pension income and includes in taxable income. In NJ the first $100,000 of pension income is not taxable.

I need to be able to generate a 1099-R is there a way to do this without a TIN?

[DanielV01]

@X068119  You cannot create a 1099-R for income that was not reported on a Form 1099-R.  However, there is a work-around.  On the NJ return, you will receive a screen that shows the Pension income you claimed on the Federal Return.  You cannot delete the entry, but you can input negative income to give yourself the exclusion.  If you do this, you will want to mail in your NJ return, and provide both a statement as to why you are claiming the exclusion the way you are and a copy of the document that shows the income in question is a foreign-sourced pension.  

There doesn't seem to be anything in NJ law that prevents you from excluding pension income that is Foreign-sourced, but here is the website link that reviews NJ tax law:  NJ Income Tax – Income Exclusions - NJ.gov

Please bear in mind that there are other qualifying factors that determine if the income is excludable or not, and your input is completely manual, so make sure you qualify for the exclusion if you are claiming it (income requirements).