How to file foreign provident funds

[tal32123]

I have two foreign provident funds which I cashed out (what I got out was less than what I deposited so basically at a loss). How do I report this using turbotax (I have premier desktop 2022)?
Also, is just having an account something I need to report each year? If so, how?

[LoriLeighEA]

Thanks for joining us today, tal32123!

Generally foreign pensions(such as provident funds) are taxable to US citizens or residents. You only report any income you receive from this account - such as withdrawals and payments. You will need to create a substitute 1099R form.

Here is how you would enter it into 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 1099R and follow the prompts.  It will ask you for a federal ID number, which you probably will not have since it is a foreign country.Because of this, you will not be able to e-file the tax return. Once you have completed your this return, you will need to print it out, sign and date it, and mail it to the IRS with copies of income documents.

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[tal32123]

Thanks for the help, just to clarify:
If I deposited in 2020,2021,2022 $15,000 for example and then cashed out the account and received $10,000 (so for this example a loss of $5,000) I still need to report this even though its basically sold at a loss?

[LoriLeighEA]

If this is an Indian Employee Provident Fund, it should be exempt from U.S. tax pursuant to the U.S.-Republic of India Income Tax Treaty. You would still have to report the income on your U.S. Taxes - you would use IRS form 8833. Here is more information regarding this:

https://www.irs.gov/forms-pubs/about-form-8833

TurboTax does not support Form 8833. You would have to use an outside tax preparer.

[kumarde]

Hi,

• Does Singapore CPF account need to be declared and paid tax on?
• If one had Singapore CPF account and amount 20k before becoming a US tax Resident in year 2023. During Y2023 interest accrued 1k, Y2024 INT interest accrued 1.5k. CPF account closed in Nov.'2024. Total finds received 20k+1k+1.5k = 22.5k. During residency in USA the interest earned was 2.5k. So,

Q1. This CPF account need to be declared? If yes, in which form?

Q2. Tax need to paid on 2.5k? In which form interest need to me mentioned?

Thanks

[DaveF1006]

Yes, you will need to report the full distribution of this fund as taxable income, including the interest. Here is how to report.

1. Log into your account
2. Select Wages and income
3. Less Common income
4. Miscellaneous Income, 1099-A, 1099>start
5. Scroll to the bottom of the page to Other Reportable Income
6. Other taxable income, answer yes
7. Then give a brief description of the income and the amount listed..
8. Once this appears in a summary screen, click on the Add Miscellaneous Income Item and then call it Singapore CPF Income and then the full amount of the income.  (22,000)

[kumarde]

Thanks for response. Are you sure 22,000 is the income while the interest I earned was only 2500 why I should pay tax on my principle?

[DaveF1006]

Yes. Here is a link that explains this in a little more detail. If you read through this, you will discover that the distribution as well as the interest is taxable.