topic Re: foreign retirement pension in Retirement tax questions

foreign retirement pension

Karem — Fri, 07 Mar 2025 20:31:13 GMT

I am a green card holder living in US. Last 2024 I received a one time payment of 10000 dolars from the public retirement fund in Peru ( similar to US Social Security). How do I report on my Us income taxes.

Re: foreign retirement pension

pk — Fri, 07 Mar 2025 21:10:49 GMT

@Karem , Unfortunately there is no Tax treaty between US and Peru.

Thus you will have to declare this income as a pension with full amount as taxable income ( generally you should be able to do this telling TurboTax that you have pension/annuity income and that everything in box 1 is taxable.

Also if Peru taxes this income, you do not get any foreign tax credit because there is no treaty "double taxation " clause in effect.

Is there more I can do for you ?

Re: foreign retirement pension

Karem — Fri, 07 Mar 2025 21:21:58 GMT

Thanks so much.

I thought I would be able to report this as a social security payment.

Re: foreign retirement pension

Karem — Fri, 07 Mar 2025 21:50:57 GMT

PK,

What do I have to write in box 7 "Distribution Code"

Do I have to report the form 8938?

Thank you again!!

Re: foreign retirement pension

pk — Fri, 07 Mar 2025 21:58:49 GMT

@Karem , the codes for Box 7 are below :

Box 7. The following codes identify the distribution you received. For
more information on these distributions, see the instructions for your
tax return. Also, certain distributions may be subject to an additional
10% tax. See the Instructions for Form 5329.
1—Early distribution, no known exception (in most cases, under age
59½).
2—Early distribution, exception applies (under age 59½).
3—Disability.
4—Death.
5—Prohibited transaction.
6—Section 1035 exchange (a tax-free exchange of life insurance,
annuity, qualified long-term care insurance, or endowment
contracts).
7—Normal distribution.
8—Excess contributions plus earnings/excess deferrals (and/or
earnings) taxable in 2024.
9—Cost of current life insurance protection.
A—May be eligible for 10-year tax option (see Form 4972).
B—Designated Roth account distribution.
Note: If code B is in box 7 and an amount is reported in box 10,
see the Instructions for Form 5329.
C—Reportable death benefits under section 6050Y.
D—Annuity payments from nonqualified annuities that may be subject
to tax under section 1411.
E—Distributions under Employee Plans Compliance Resolution
System (EPCRS).

most of the time people use code 7 -- normal distribution .

I don't understand your question about form 8938 -- FATCA form. You have tell me more -- either here or PM me ( just NO PII -- Personally Identifiable Information ).