Foreign Social Security payment from Mexico

[respinosa]

I receive a pension from the social security administration in Mexico. I was told to enter that income in the Social Security  Section of Turbo Tax, Form 1099-SSA although Mexico does not give you that form? Is that ok? I understand there is a treaty with Mexico so that income should not be taxable in the US. Is this the correct approach?

[AmyC]

Either way to report the income as discussed in another thread of yours.

If you did not pay any foreign tax, then you will want to subtract the income off your tax return. Follow these steps:

1. Select Federal
2. Select Income & Expenses
3. Locate Less Common Income
4. Miscellaneous Income, 1099-A, 1099-C
5. select START
6. scroll to the bottom to Other Reportable Income.
7. Select START
8. select YES
9. Enter description,  Mexico treaty based exemption
10. then a negative of your pension amount, use a minus sign in front
11. Select Continue

If you go this route, you will need to mail in your tax return with the Form 8833 for a Treaty Based Position Disclosure.   You can access the form HERE. Your state may need the form as well.