To report your RRSP/DPSP on your U.S. federal tax return, you can use the instructions listed below.
Some foreign pensions might not be taxable if they are covered under any tax treaties between the foreign country and the United States. Seek legal advice if you are not certain whether your pension income is covered by a tax treaty. Generally, most foreign pensions are taxable to US citizens or residents.
If your foreign pension is taxable, you can report it in TurboTax by creating a "substitute Form 1099-R".
You will do this as follows:
- Continue your tax return
- Click on the search icon in the right upper corner of your TurboTax screen, then Enter
- Type "1099r" in the search box
- Click on the link "Jump to 1099r"
- Follow the TurboTax prompts
- Next screen, Choose your bank or brokerage, select I'll type it in myself
- Follow the TurboTax prompts.
- On the screen "Let Us Enter Your 1099-R" select "I'll type it myself" and "Continue"
- On the screen that says "Tell Us Which 1099-R You Have" select "I need to prepare a substitute 1099-R"
- Enter your information on the following screen
- And answer all of the follow-up questions on the subsequent screens
Remember: When you report a foreign pension on your tax return, report the total amount received. Do not deduct taxes paid from your gross income received.
You also complete the Foreign Tax Credit (Form 1116) interview in the TurboTax program in order to claim any credit due for foreign taxes paid. You will find the entry screens under Deductions & Credits, Estimates and Other Taxes Paid, Foreign Tax Credit. You can also type "foreign tax credit" in the search bar and click on the link "Jump to foreign tax credit"
Click here for Claiming the Foreign Tax Credit with Form 1116.
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