Hi - I am receiving two foreign pensions. What do I enter for the Foreign pension payer tax ID? I've tried blank, 11-1111111 and 99-9999999, None of these works!

[LeonardS · Accepted solution]

You can enter the foreign pension income on Form 1040, Line 21 as "other income" or "foreign pension." 

To report your foreign pension in TurboTax follow these steps:

1. Log in to your TurboTax account if it is not open.
2. Select the Wages & Income tab.
3. Scroll down to Less common income click Show more.
4. On the page Let's Work on Any Miscellaneous Income click on Other reportable income.
5. On the page Any Other Taxable Income?  select yes.
6. On the page, Other Taxable Income enter Foreign Pension for the description and the amount.
7. Select continue and answer No on the next page.

[confusedabd]

@mardler can you please share what worked for you? and how you did it?

@LeonardS just reporting it as other income increases the tax bill because where/how do you indicate that you already taxes paid on it and due to tax treaty it is only taxable in the country that paid the pension.

[Art102]

You will need to fill out Form 1116 - Foreign Tax Credits which will offset your US tax obligation dollar for dollar.  You convert the foreign taxes you paid to USD first.

But, are you living in the foreign country, or in the USA?  Most tax treaties say that the country of residence is where you owe the taxes, even on the foreign country social security pension. 

As an example:  I used to live in Switzerland, and when living there I paid tax there on my Swiss Social Security and Swiss Company Pension, also US Social Security.  When I filed US taxes I took foreign tax credits.

Now I live in the USA and Switzerland no longer taxes me on any of my Swiss based income.  Now I claim it as "Other Income" and pay US taxes only and do not need to deal with Form 1116 complications.  Note, that I had to maintain documentation on the cost basis of my company pension there as I had paid US taxes on the contributions each year.  I only enter the taxable portion in Other income.  

[Art102]

Sorry, but this is only a workaround and not a real solution as the income is not classified as Pension (Retirement) Income.  Many states have property tax deductions that depend on being below certain income limits and pension income is treated differently than "other income".

Professional Tax Programs seem to be able to do this (H&R Block, etc) but I would prefer to do my own taxes.

Any other workable solution? 

[DaveF1006]

Yes. You can fill out a substitute 1099R form and leave the EIN blank. Sometimes, there have a success stories by using all nine's as a EIN or 99-9999000.  Here is how to enter your substitute 1099R.

1.  Sign into your account and select Pick up where I left off or Continue.
2. Type 1099-R in the search bar and select Jump to 1099-R
3.  On screen, Your 1099-R, answer Yes and select Continue
4. Next screen, Choose your bank or brokerage, select I'll type it in myself
5. On the screen Tell Us Which 1099-R You Have, 
6. Then check the box  I need to prepare a substitute 1099-R and follow the prompts.  

If the IRS rejects your return, you will need to print and mail your return to both the federal and state government but at least you will get all the deductions you are entitled to

 @Art102