topic Where to enter foreign pension income and foreign tax credits? in Deductions & credits

Where to enter foreign pension income and foreign tax credits?

pontenbergcd — Thu, 06 Jun 2019 06:03:55 GMT

My wife receives a pension from Brazil government and a private pension from Brazil.

To enter foreign pension in TurboTax online program, you...

LinaJ2018 — Thu, 06 Jun 2019 06:03:56 GMT

To enter foreign pension in TurboTax online program, you will need to create a substitute form 1099-R.

Here are the steps:

1. Sign into your account and select Take me to my return

2. At the right upper corner, type in 1099r, then Enter

3. Select Jump to 1099r

4. On screen, Your 1099-R, answer Yes and select Continue

5. Next screen, Choose your bank or brokerage, select I'll type it in myself

6. On the screen Tell Us Which 1099-R You Have, check the box

I need to prepare a substitute 1099-R and follow the prompts. See attached screenshot

As to the Federal ID, if your foreign issuer does not have the ID number, try entering nine 9s. If electronic errors occur due to 1099-R data entry, enter the pension under Miscellaneous income, see below instructions. As long as IRS has the pension reported and included in total income, it is not problematic.

1. In the program, from the top, select tab Federal taxes / Wages & Income -Less Common Income ( very last section on the screen)

2. Select Miscellaneous Income , 1099-A, 1099-C- Start

3. Select Miscellaneous Income- Other income not already reported on a Form W-2 or Form 1099- select Start to information

To enter a foreign tax credit on form 1116, go to:

1. After sign into your account, select Take me to my return

2. At the right upper corner, in the search box , type in foreign tax credit and Enter

3. Select Jump to foreign tax credit

4. Start with screen Foreign Taxes and select Continue to follow prompts.

It should be noted that Turbo Tax does not accept 9's for...

dburnt — Thu, 06 Jun 2019 06:03:57 GMT

It should be noted that Turbo Tax does not accept 9's for electronic filing, nor does it accept the payer ID on my foreign slip. Also, by the time you figure out that the 9's don't work (i.e. when you try to file electronically), you have to completely start the return over again to back out the information you just entered or, as I had to (2 years running) file by mail. Turbo Tax needs better support for foreign pension income.

Someone answered put a zero in front of the second string...

reg-dora — Thu, 06 Jun 2019 06:03:58 GMT

Someone answered put a zero in front of the second string of nines-it worked for me.

Someone answered put a zero in front of the second string...

reg-dora — Thu, 06 Jun 2019 06:04:00 GMT

Someone answered put a zero in front of the second string of nines-it worked for me.

With the 2018 "premier" online, there doesn't seem to be...

pwistaria — Thu, 06 Jun 2019 06:04:01 GMT

With the 2018 "premier" online, there doesn't seem to be a way of entering foreign taxes that aren't related to a 1099-INT or 1099-DIV. (And the system for entering 1099-DIV is messed up -- doesn't allow splitting a single 1099-DIV into multiple countries; it wouldn't let me delete the 1116; and it wouldn't let me correct my entries, e.g. by making everything to "Various" countries. Also, it kept saying that a certain amount was unallocated, but wouldn't tell me how much -- bad UI)

It seems that I could switch to the downloaded version of...

pwistaria — Thu, 06 Jun 2019 06:04:03 GMT

It seems that I could switch to the downloaded version of TurboTax without paying any extra; and after some fiddling I was able to enter the numbers directly into the 1116. (the "helpful" question system made too many assumptions to be useful)

Re: To enter foreign pension in TurboTax online program, you...

payup — Sun, 01 Mar 2020 03:59:28 GMT

Some of the suggestions here on entering foreign pensions as either Other Income or Misc Income may be a problem. If it is a pension from a foreign government or foreign corporate entity, then in some states that give tax breaks for pension income, you will NOT receive the tax benefitfor the pension if it is entered in TT as Other Income or Misc. Income.

Re: Where to enter foreign pension income and foreign tax credits?

NachAmerika1976 — Wed, 18 Mar 2020 04:54:37 GMT

I receive monthly payment from German Pension

Re: Where to enter foreign pension income and foreign tax credits?

KarenJ2 — Wed, 18 Mar 2020 14:30:22 GMT

To enter a foreign pension in TurboTax online program, simply follow these steps:

After you sign into your account, select

Take me to my return
In the program, from the top, select tab Federal taxes / Wages & Income -Less Common Income at the bottom of the screen
Select Miscellaneous Income , 1099-A, 1099-C- Start
Select Miscellaneous Income- Other income not already reported on a Form W-2 or Form 1099-
choose Start to enter information

To report the foreign tax paid on your pension for foreign tax credit:

Enter foreign tax credit in the search box at the top of the page and click the Jump to link
Click 'Yes" you paid foreign taxes
Click through the screens regarding foreign interest and dividends
Click yes that you have reported all your foreign income already in TurboTax
Click that you want to take a credit
Answer question about the Simplified Limitation Election
Choose income type for pension - it will be Passive
Add the name of your county
Enter description -XXX pension
Enter Pension Income amount that you previously reported in another section of TurboTax
Enter your taxes you paid on your foreign pension in the box "Other income"
Continue through the foreign tax credit screens until done.

Re: Someone answered put a zero in front of the second string...

TMB20 — Sat, 06 Jun 2020 03:05:40 GMT

this actually works thanks - I agree that Turbotax needs to do a better job at working with the IRS to find a code that would mean 'foreign' ID so we can all move on

Re: To enter foreign pension in TurboTax online program, you...

Garbanzor29 — Wed, 27 Jan 2021 03:15:25 GMT

I used the Turbo Tax IRS Free File version, and it took me a while to figure out how to solve this problem.

The following worked for me:

I selected FINANCIAL INSTITUTION (the default first choice), and

I chose TYPE IT IN MYSELF to enter the foreign pension information.

I then entered the foreign pension payer name, chose FOREIGN ADDRESS, and entered that, too.

For the Payer's TIN, I entered ALL ZEROES (00-0000000) and it worked!

It then required a distribution code, so I chose 7, which is the code for a "normal" distribution.

Only at the end of the process did it give me a screen that said,

"Tell us if any of these uncommon situations apply."

The third choice there was "I need to file a substitute 1099-R."

And that took care of it!!

Re: To enter foreign pension in TurboTax online program, you...

Dearfinance — Mon, 15 Feb 2021 18:46:30 GMT

Do I need to file form 4852 if I get a work or government pension from Britain

Re: To enter foreign pension in TurboTax online program, you...

MarilynG1 — Tue, 16 Feb 2021 19:25:00 GMT

@Dearfinance Yes, if you don't receive a 1099-R for your Foreign Pension Income, you can indicate in TurboTax that you are entering a 'Substitute 1099-R' (Form 4852).

Type '1099r' in the Search area, then click on 'Jump to 1099r'. At the end of your 1099-R entry, you can indicate this is a 'Substitute 1099-R'.

However, since your Substitute 1099-R does not have a Payer Identification Number, you will need to print and mail your return.

You could also report the income as 'Miscellaneous Income' and still be able to Efile.

Click this link for details on Reporting Foreign Pension Income.

Re: To enter foreign pension in TurboTax online program, you...

optx103 — Mon, 15 Mar 2021 03:03:26 GMT

In the online version I'm using, it says:

"When you prepare a substitute Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc., you are saying that the following statement is true:

I have been unable to obtain (or have received an incorrect) Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc., from my provider named X. I have notified the Internal Revenue Service of this fact."

So how does one notify the IRS of this fact, and if I'm looking to e-file and renew my info for stimulus purposes, and this year I can't claim a state tax credit based on the pension being on line 5, does it make sense to do form 4852 vs. reporting the pension income as "other income" on line 8?

Re: To enter foreign pension in TurboTax online program, you...

ReneeM7122 — Mon, 15 Mar 2021 14:13:11 GMT

No, do not complete Form 4852. This is a substitute 1099 or W-2 when your employer or payer did not submit a statement when they should have. In the case of a pension from outside the US, there is no 1099 or W-2 to be had.

To enter foreign pension in TurboTax online program, you will you would NOT treat it as "other income," rather, you will create a mock form 1099-R.

Within your Personal Tax section, Under Retirement Plans, select the IRA, 401(k), Pension Plans (1099-R).

On screen, Your 1099-R, answer Yes and select Continue
Next screen, Choose your bank or brokerage, select I'll type it in myself
On the screen Tell Us Which 1099-R You Have, check the box

I need to prepare a substitute 1099-R and follow the prompts.

If your foreign issue does not have an ID number, you can try entering nine 9s. If errors occur due to this entry, you can enter the pension under Miscellaneous Income. The following link provides the info for both entries:

https://ttlc.intuit.com/questions/3687929-where-to-enter-foreign-pension-income-and-foreign-tax-cred...

@optx103

Re: To enter foreign pension in TurboTax online program, you...

optx103 — Mon, 15 Mar 2021 21:52:02 GMT

Thanks for the response. Yes, that last part is what I did when I got the aforementioned prompt. I was also under the impression that the program fills form 4852 when you choose substitute 1099-R. I'm just not sure how I can certify that I've notified the IRS that a UK company hasn't provided me with a US 1099-R, as if they're obligated to.

Anyway, in the past (different product) I was instructed to just enter info as if I had a 1099 (no substitute generation required), but that was filed on paper.

I'd prefer to go with the substitute to keep things better documented (I may be filing 2021 with a UK state pension lump sum), but the "other income" approach seems more straightforward, and was apparently endorsed as IRS-preferred by another TT advisor:

https://ttlc.intuit.com/community/retirement/discussion/the-irs-has-cha[product key removed]rement-for-how-to-report-r/01/753208#M72550

Presumably there's no real drawback in doing that unless the pension would qualify for a credit at the state level? 'Tis all a bit confusing.

Re: To enter foreign pension in TurboTax online program, you...

ipc1 — Mon, 29 Mar 2021 02:50:05 GMT

ReneeM7122,

When preparing a substitute 1099-R as you describe, entering all 9s gives error, however as suggested by other users 99-0999999 is error free, I tried this and yes, it is error free. See for instance:

Solved: Thanks John-I prefer the 1099s for the info & the ... (intuit.com)

With one user saying, “the e-file went through.” Which I take to mean that it was at least transmitted, but was it accepted by the IRS? Can TurboTax confirm that 99-0999999 will be accepted by the IRS for the Payer Federal ID entry?

Re: To enter foreign pension in TurboTax online program, you...

LinaJ2020 — Tue, 30 Mar 2021 00:16:15 GMT

Yes, it is accepted by the IRS. If it does not generate any e file error, you will be fine.

Re: To enter foreign pension in TurboTax online program, you...

ipc1 — Sun, 04 Apr 2021 19:41:45 GMT

Stepping through the Substitute Form 1099-R process, following the “Do you want to fill out Form 4852” step there is a screen with the text shown by the screenshot below. The Foreign Pension payer does not provide a 1099-R. Is it therefore reasonable to assume that it not necessary to call the IRS for assistance because they will not be able to provide any assistance to resolve this?