Do I need to report my foreign pension to IRS?

[Mike9241]

we need to know what your status is in the US and the country you got the pension from. There are tax treaties with various countries and they differ as to the taxability of certain items 

[Z_b-N324]

     Thank you for replying.

     I am a US citizen and not a dual citizen, and started receiving my social security pension last year from the Philippines.

     Should I report my foreign pension to IRS? If yes, how?

     The social security pension is not taxable in the Philippines.

     I appreciate all the help.

[AmyC]

Yes you need to report all worldwide income. Since it is not taxable in the Philippines, you will not receive a tax credit. 

Sometimes income is exempt under a tax treaty so you can subtract it back out. I don't believe you qualify under the Philippines - Tax Treaty Documents. I am not a tax treaty Philippines expert so you may want to read through it for your situation.

For entering the form:

1. Open your return to federal income
2. Select 401k, pension, 1099-R
3. Select I'll type it in myself
4. Continue
5. Select Form 1099-R
6. Continue
7. Enter the name and address of the payor
8. Federal ID number, enter the dummy code  23-1234567
9. Enter gross and taxable distribution in USD, put the entire amount in both boxes regardless of actual taxable amount in this spot
10. Box 7 - Select a code - Enter distribution code 7  for normal distribution 
11. Continue

Subtract out the income, if nontaxable:
1. Miscellaneous Income, 1099-A, 1099-C, Start
2. Scroll to the bottom
3. Other reportable income, Start
4. Other taxable income?
5. Select YES
6. Description Treaty income
7. Amount, enter your negative amount
8. Continue

[Edit 4/1/2024 8:15 am PST] @Z_b-N324

[pk]

@Z_b-N324 ,  assuming that you are talking about Social Security equivalent in the Philippines, the treaty artcle is as below ----

ARTICLE 19
Social Security Payments
Social security payments and other public pensions paid by one of the Contracting States to
an individual who is a resident of the other Contracting State (or in the case of such payments by
the Philippines to an individual who is a citizen of the United States) shall be taxable only in the
first-mentioned Contracting State. This article shall not apply to payments described in Article
20 (Governmental Functions).

If you meant private pension then it is treated different.

@AmyC , please pardon my stepping in here --- just curious because  many of treaties  do allow taxation  ONLY by the issuing  govt while others  allow both and I was not sure of the Philippines.   My humble apol.ogies