Where to enter foreign pension income and foreign tax credits?

[pontenbergcd]

My wife receives a pension from Brazil government and a private pension from Brazil.

[LinaJ2018]

To enter foreign pension in TurboTax online program, you will need to create a substitute form 1099-R. 

Here are the steps:

1.  Sign into your account and select Take me to my return

2.  At the right upper corner, type in 1099r, then Enter

3.  Select Jump to 1099r

4.  On screen, Your 1099-R, answer Yes and select Continue

5.  Next screen, Choose your bank or brokerage, select I'll type it in myself

6.  On the screen Tell Us Which 1099-R You Have, check the box 

     I need to prepare a substitute 1099-R and follow the prompts.  See attached screenshot

As to the Federal ID, if your foreign issuer does not have the ID number, try entering nine 9s.  If electronic errors occur due to 1099-R data entry, enter the pension under Miscellaneous income, see below instructions.  As long as IRS has the pension reported and included in total income, it is not problematic. 

1.  In the program, from the top, select tab Federal taxes / Wages & Income -Less Common Income ( very last                          section on the screen) 

2.  Select Miscellaneous Income , 1099-A, 1099-C- Start 

3.  Select Miscellaneous Income- Other income not already reported on a Form W-2 or Form 1099-                                        select Start to information

To enter a foreign tax credit on form 1116, go to:

1. After sign into your account, select Take me to my return

2.  At the right upper corner, in the search box , type in foreign tax credit and Enter 

3.  Select Jump to foreign tax credit 

4.  Start with screen Foreign Taxes and select Continue  to follow prompts.

[dburnt]

It should be noted that Turbo Tax does not accept 9's for electronic filing, nor does it accept the payer ID on my foreign slip.  Also, by the time you figure out that the 9's don't work (i.e. when you try to file electronically), you have to completely start the return over again to back out the information you just entered or, as I had to (2 years running) file by mail.  Turbo Tax needs better support for foreign pension income.

[reg-dora]

Someone answered put a zero in front of the second string of nines-it worked for me.

[reg-dora]

Someone answered put a zero in front of the second string of nines-it worked for me.

[pwistaria]

With the 2018 "premier" online, there doesn't seem to be a way of entering foreign taxes that aren't related to a 1099-INT or 1099-DIV. (And the system for entering 1099-DIV is messed up -- doesn't allow splitting a single 1099-DIV into multiple countries; it wouldn't let me delete the 1116; and it wouldn't let me correct my entries, e.g. by making everything to "Various" countries. Also, it kept saying that a certain amount was unallocated, but wouldn't tell me how much -- bad UI)

[pwistaria]

It seems that I could switch to the downloaded version of TurboTax without paying any extra; and after some fiddling I was able to enter the numbers directly into the 1116. (the "helpful" question system made too many assumptions to be useful)

[payup]

Some of the suggestions here on entering foreign pensions as either Other Income or Misc Income may be a problem. If it is a pension from a foreign government or foreign corporate entity, then in some states that give tax breaks for pension income, you will  NOT receive the tax benefitfor the pension if it is entered in TT as Other Income or Misc. Income.

[NachAmerika1976]

I receive monthly payment  from German Pension

[KarenJ2]

To enter a foreign pension in TurboTax online program, simply follow these steps:

After you sign into your account, select 

1. Take me to my return
2. In the program, from the top, select tab Federal taxes / Wages & Income -Less Common Income at the bottom of the screen
3. Select Miscellaneous Income , 1099-A, 1099-C- Start 
4. Select Miscellaneous Income- Other income not already reported on a Form W-2 or Form 1099-
5. choose Start to enter information

To report the foreign tax paid on your pension for foreign tax credit:

1. Enter foreign tax credit in the search box at the top of the page and click the Jump to link
2. Click 'Yes" you paid foreign taxes
3. Click through the screens regarding foreign interest and dividends
4. Click yes that you have reported all your foreign income already in TurboTax
5. Click that you want to take a credit
6. Answer question about the Simplified Limitation Election
7. Choose income type for pension - it will be Passive
8. Add the name of  your county
9. Enter description -XXX pension
10. Enter Pension Income amount that you previously reported in another section of TurboTax 
11. Enter your taxes you paid on your foreign pension in the box "Other income"
12. Continue through the foreign tax credit screens until done.

[TMB20]

this actually works thanks - I agree that Turbotax needs to do a better job at working with the IRS to find a code that would mean 'foreign' ID so we can all move on

[Garbanzor29]

I used the Turbo Tax IRS Free File version, and it took me a while to figure out how to solve this problem.

The following worked for me:

I selected FINANCIAL INSTITUTION (the default first choice), and

I chose TYPE IT IN MYSELF to enter the foreign pension information.

I then entered the foreign pension payer name, chose FOREIGN ADDRESS, and entered that, too.

For the Payer's TIN, I entered ALL ZEROES (00-0000000) and it worked!

It then required a distribution code, so I chose 7, which is the code for a "normal" distribution.

Only at the end of the process did it give me a screen that said, 

"Tell us if any of these uncommon situations apply."

The third choice there was "I need to file a substitute 1099-R."

And that took care of it!!

[Dearfinance]

Do I need to file form 4852 if I get a work or government pension from Britain

[MarilynG1]

@Dearfinance Yes, if you don't receive a 1099-R for your Foreign Pension Income, you can indicate in TurboTax that you are entering a 'Substitute 1099-R' (Form 4852). 

Type '1099r' in the Search area, then click on 'Jump to 1099r'. At the end of your 1099-R entry, you can indicate this is a 'Substitute 1099-R'.

However, since your Substitute 1099-R does not have a Payer Identification Number, you will need to print and mail your return. 

You could also report the income as 'Miscellaneous Income' and still be able to Efile.

Click this link for details on Reporting Foreign Pension Income. 

[optx103]

In the online version I'm using, it says:

"When you prepare a substitute Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc., you are saying that the following statement is true:

I have been unable to obtain (or have received an incorrect) Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc., from my provider named X. I have notified the Internal Revenue Service of this fact."

So how does one notify the IRS of this fact, and if I'm looking to e-file and renew my info for stimulus purposes, and this year I can't claim a state tax credit based on the pension being on line 5, does it make sense to do form 4852 vs. reporting the pension income as "other income" on line 8?