topic Foreign Tax paid on Foreign Pension and completing 1099R in Retirement tax questions

Foreign Tax paid on Foreign Pension and completing 1099R

DB102 — Mon, 29 Mar 2021 07:26:04 GMT

I was told to complete a 1099R for a foreign pension amount. Would I also report the tax paid to foreign tax authorities on the substitute 1099R?

Re: Foreign Tax paid on Foreign Pension and completing 1099R

KathrynG3 — Mon, 29 Mar 2021 12:38:22 GMT

No, the foreign tax will be reported on Form 1116 as a Foreign Tax Credit.

See the answer by TurboTax Employee Tax Expert @LinaJ2020 for more directions: Where do I input the foreign pension income?

@DB102

Re: Foreign Tax paid on Foreign Pension and completing 1099R

Y-FRA — Sat, 09 Oct 2021 00:02:31 GMT

Dear KathrynG3, could you please comment on one more issue related to foreign pensions. When I complete Form 1116 to claim tax credit for a foreign pension, shall I treat this pension as passive or as general category income? IRS put annuities into a passive basket. But pension is quite a different animal and I could not find any IRS clarifications regarding the appropriate income category for this case in their publications and instructions related to FTC (they seems do not use the word "pension" in this documents at all while pensions are discussed in several other IRS documents) . Is treatment for social security type pensions and company pensions the same in regard of the income category? If somebody else could clarify this issue, I would also highly appreciate such help.