Where do I input the foreign pension income?

[lrghosh]

I have left Switzerland and they have given me my retirement benefits in a lump sum.  Where do I enter this?

[Hank-P]

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

Within your Personal Tax section, Under Retirement Plans, select the IRA, 401(k), Pension Plans (1099-R).

• On screen, Your 1099-R, answer Yes and select Continue
  
• Next screen, Choose your bank or brokerage, select I'll type it in myself
  
• 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. 

If your foreign issue does not have an ID number, you can try entering nine 9s. If errors occur due to this entry, you can enter the pension under Miscellaneous Income. The following link provides the info for both entries:

https://ttlc.intuit.com/questions/3687929-where-to-enter-foreign-pension-income-and-foreign-tax-cred... 

[Steve70]

when I create the 1099R, I am being asked for a W2.  How do I handle this?

[LinaJ2020]

Generally, foreign pensions are taxable to US citizens or residents.  However, some foreign pensions might not be taxable if it is covered under any tax treaties between the foreign country and the United States.  In addition, tax treaty-related matters are out of scope for our advice.  I will suggest you to consult a specialized professional for verification. 

If your foreign pension is taxable, you will need to create a substitute form 1099-R. 

Here are the steps:

In TurboTax online,

• Sign in to your account and select Pick up where you left off
• At the right upper corner, type in 1099r, then Enter
• Select Jump to 1099r
• Follow prompts
• Next screen, Choose your bank or brokerage, select I'll type it in myself
• Follow prompts.  On the screen "Tell us if any of these uncommon situations apply" 
• Check the box I need to prepare a substitute 1099-R and follow the prompts.  

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

• To your left, select Federal
• From the top, select Wages and Income
• Scroll down to last section -Less Common Income -select  Miscellaneous Income, 1099-A, 1099-C- Start 
• Next screen, scroll down to Other Reportable Income- Start
• Follow prompts

 For more information, see http://www.irs.gov/Businesses/The-Taxation-of-Foreign-Pension-and-Annuity-Distributions

If it is not taxable to you,

• report your full amount as instructed above in the 1099R section. Then enter the treaty exempt amount as negative amount (e.g. -5000) under Other Reportable Income as instructed below.

• Download and fill in a Form 8833 from IRS to claim an exception.  https://www.irs.gov/pub/irs-pdf/f8833.pdf

• You cannot e-file.  You may still use the TurboTax program to prepare all your tax forms, but you would need to print them out and submit by mail along with form 8833. 

@Steve70

[amgc]

Publication 8833 states that there are exceptions from reporting.

In my case specifically "That a treaty reduces or modifies the taxation of income derived by an individual from dependent personal services, pensions, annuities, social security, and other public pensions, as well as income derived by artists, athletes, students, trainees, or teachers" applies.

Is in that case electronic filing OK?

[JeffreyR77]

It is likely your situation will require statements be attached to the tax return that cannot be efiled.  Due to the Treaty provisions your Federal return will not be able to be efiled.

Swiss Social Security Payments and the US Tax Return

[kmorin65]

I'm in this situation.  What did you find out?

[Y-FRA]

Dear @LinaJ2020 , could you please comment on one more issue related to foreign pensions. When I complete Form 1116 to claim tax credit for a foreign pension, shall I treat this pension as passive or as general category income? IRS put annuities into a passive basket. But pension is quite a different animal and I could not find any IRS clarifications regarding the appropriate income category for this case in their publications and instructions related to FTC (they seems do not use the word "pension" in this documents at all while pensions are discussed in several other IRS documents) . Is treatment for social security type pensions and company pensions the same in regard of the income category? If somebody else could clarify this issue, I would also highly appreciate such help. 

[wvanbiene]

Where in the Step By Step session do I enter a Foreign Pension payment I received?

[LindaS5247]

To enter foreign pension in TurboTax online program, you would create a "Substitute" Form 1099-R.

Within your Personal Tax section:

1. Go to Retirement Plans
2. Select the IRA, 401(k),
3. Pension Plans (1099-R)
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
7. Check the box I need to prepare a substitute 1099-R and follow the prompts. 

As to the Federal ID, most of the foreign pensions often do not have the ID number.  Try entering nine 9s.  If electronic errors occur due to this 1099-R data entry, enter the pension under Miscellaneous income, see instructions below. As long as the IRS has the pension reported and included in total income, it should not present a problem.   

• To your left, select Federal
• From the top, select Wages and Income
• Scroll down to last section -Less Common Income -select  Miscellaneous Income, 1099-A, 1099-C- Start 
• Next screen, scroll down to Other Reportable Income- Start
• Follow prompts

 For more information, see http://www.irs.gov/Businesses/The-Taxation-of-Foreign-Pension-and-Annuity-Distributions