After 20 years I'm receiving a lump sum social security from a Western European county

[jrgates001]

My question is where do I declare this income (which form)? Is this a "miscellaneous" income or something else since I earned this while working in Europe? It seems like it would be exempt from taxation since this was derived from the monies my European employers paid into the State (https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion). 

[SusanY1]

The Foreign Earned Income Exclusion (FEIE) does not apply to pension or retirement wages or to any income received during a period of residence in the US.  

However, depending on the country that paid it to you, it could be eligible for special treatment under a Totalization Agreement or Tax Treaty that addresses this type of income. 

It also matters where you were living when it was paid to you.  

From which country is the Social Security income and where did you live in 2024?  

[jrgates001]

Thanks SusanY1. The country is Switzerland. Note too that the monies received are those which I and my employers paid into over a few years. We have been living in the States for the last 25 years. Where do I report this in TurboTax? Misc income or other category (note that I did not receive any "form" from Switzerland, but rather a summary document about their calculations)?

[DaveF1006]

Yes, this money is taxable in the US under the US/Swiss tax treaty. Here is how to report the income.

1. Log into your account
2. Select Wages and income
3. Less Common income
4. Miscellaneous Income, 1099-A, 1099>start
5. Scroll to the bottom of the page to Other Reportable Income
6. Other taxable income, answer yes
7. Then give a brief description of the income and the amount listed.

According to the treaty, the money can be taxed in Switzerland, but only at 15%.  You may be able to claim a foreign tax credit for the amount you paid in Switzerland.

1. Go to Federal
2. Deductions and credits 
3. Estimate and other taxes paid 
4. Foreign Tax Credit>start or revisit
5.  As you go through the screens, when it asks "Tell Us About Your Foreign Taxes" select none of these apply.
6. When it asks if you wish to take the deduction and credit, take the credit.
7. Continue through until you reach a screen that says "No other income or expenses" Say no
8. Continue through until it asks the income type, say Passive Income
9. Next add a country pick Switzerland
10. Other Gross Income say Pension Income and the gross amount of the income.
11. Continue through the interview until it asks for the foreign taxes you paid, here record the amount.  
12. Now you are done reporting the foreign taxes. Just keep going through the section without making any more entries. You will have finished reporting your gross income from the pension and the foreign taxes paid.

[jrgates001]

Many thanks for detailing these steps. I appreciate the added bonus (beyond the software tool) of having TurboTax Expert feedback.