Where do I specify foreign taxes withheld on foreign Social Security income? I don't see a way to do this on substitute form 1099-R.

[LinaJ2020]

To enter a foreign social security income or pension in TurboTax online, here are the steps:

• Sign in to your TurboTax account and select Pick up where you left off
• At the right upper corner, in the search box, type in "1099r" and Enter
• Select Jump to 1099r
• Follow prompts
• On-screen, Tell Us Which 1099-R You Have, check the box you need to create a substitute 1099-R to continue.  See the image below

-As to the Federal ID, if there is no identification number provided, enter nine 9s.  If electronic errors occur due to 1099-R data entry, enter the social security income under Miscellaneous income, see instructions below.  As long as the IRS has the social security reported and included in total income, it is not problematic. 

To enter information under Miscellaneous Income, follow the steps here:

• Sign in to your account, select Pick up where you left off
• To your left, select Federal taxes 
• From the top, select Wages & Income
• Scroll down to Less Common Income ( very last section on the screen) 
• Select Miscellaneous Income, 1099-A, 1099-C- Start 
• Select Miscellaneous Income- Other income not already reported on a Form W-2 or Form 1099- Start 

[gvanmoor]

Thanks LinaJ2020 for your quick response.  However, it only explains how to enter foreign social security income, something I know how to do and have done in past years.  My question was how to report the *foreign tax* withheld on the foreign Social Security income.  This was not an issue in the past, since they started withholding tax in 2019.

[ThomasM125]

I don't see why you would need to report foreign tax withheld on your tax return, unless you are over the social security tax income level, or consider it foreign income taxes and want to get a credit for it. If so, you can enter it separately in the foreign tax credit area of TurboTax.

Go to the "Foreign taxes" section under "Estimates and Other Taxes Paid" in the "Deductions & Credits" section of TurboTax to see if you qualify for a credit for foreign taxes paid.

Please keep in mind that social security is not a tax, it is a contribution to your retirement account with the government.

[gvanmoor]

Thanks for another fast response.  Yes, I receive US Social Security as well and I am over the Social Security tax income level.  It is indeed a tax credit I am after.  Following the 'Foreign Taxes' section, I think I have found a way to report the taxes that were withheld.  Thanks so much!

[Anonymous]

what country because the US has tax treaties with certain countries that exempts the foreign social security from taxation in the US? 

[gvanmoor]

The country in question is the Netherlands, and there is indeed such a tax treaty.  I am in the process of making sure this treaty applies to my particular case.  I decided not to bring this up in my original question since this is not a Turbotax specific issue.  But good point, I appreciate you bringing it up.

[Kosetife]

If your country withholds income tax on your social security income, you can get the so called Foreign Tax Credit by filling Form 1116 attaching it to your Form 1040, unless otherwise specified by a bilateral previsional treaty between your country and the US. 

[AmyC]

Netherlands article 19, #4states: Subject to the provisions of paragraph 2 of Article 20 (Government Service), pensions and other payments made under the provisions of a public social security system and other public pensions paid by one of the States to a resident of the other State or a citizen of the United States shall be taxable only in the first-mentioned State.

If this is what applies to you, then you need to report the income with the substitute 1099-R and then subtract the income back off the return. To do that:

1. go to the income section,
2. scroll to the bottom option,  Miscellaneous Income.
3. select,
4. scroll to the bottom again, Other Reportable Income,
5. select.
6. Enter the income as a negative and the description as Netherlands treaty.

Then, no need to enter foreign tax paid at all.

If this is not your situation, enter the income and enter the foreign tax paid. Where do I enter the foreign tax credit (Form 1116) or deduction?   Note, you can try both options. The credit is most commonly used.