How to report UK bank interest, Corp. Pension, and National Pension

[Nelbelmom]

I had a CPA do this last year as it was the first year we received a National Pension from the UK, but I can't  figure out how to file this year, even though I have his example, and Turbo Tax Home and Business is not giving me clear answers/guidance.

First off, we ALWAYS mail our forms in, so electronic submit is not a goal.

1.  My husband has some savings in 2 banks in the UK, they get minimal action.

 2. There is a small amount of interest from these accounts.
 3.  He gets a small amount of dividends from a few stocks he has in the UK, .
 4.  He gets a corporate pension by direct deposit to the US.

 5. We both get a UK National Pension by direct deposit to the US.

I have totaled all of this, and it's below $95,000. So I gather that I don't need to submit the form that starts with B that I can't remember the name of?  Which is a huge relief.

A. Under what category, and with what form/s do I need to submit:
---The UK National Pension (the equivalent of US SS)?

---The Corporation Pension from the UK (was I correct in doing it with a 4852 form, since they send us the UK version of a 1099, but it's completely different and even uses a different calendar year.) ?

---Do I need to enter the UK foreign bank interest differently than the US bank interest?

---I haven't got into entering the UK stock dividend info yet, but do I need to do anything special if it's not a lot?

7. Lastly, for 8 months we received our UK National pensions while also receiving our US Social Security benefits.  Eventually US SS figured out how much money we owed back to them , and my husbands US SS for 2022 was actually minus $309.08 in the end.  (It was complicated and a one time event).
As there is a way to report Social Security Benefits on our taxes, is there anyway to report a minus amount?

Thank you very much for anybody who can clarify this in layman's terms, as I'm getting a headache dealing with it all.  🙂

[DaveF1006]

We have a lot to cover here so I will answer these one at a time.

1. There is a reporting requirement for each of your accounts if the balances in the accounts reach a certain threshold. First of all there may be a FBAR reporting requirement if the aggregate balances of your pension accounts, stock accounts, savings accounts etc exceed $10,000 during the calendar year. You don’t need to report foreign financial accounts that are:

• Correspondent/Nostro accounts,
• Owned by a governmental entity,
• Owned by an international financial institution,
• Maintained on a U.S. military banking facility,
• Held in an individual retirement account (IRA) of which you’re an owner or beneficiary,
• Held in a retirement plan of which you’re a participant or beneficiary, or
• Part of a trust of which you’re a beneficiary, if a U.S. person (trust, trustee of the trust or agent of the trust) files an FBAR reporting these accounts.

        2. You do not need to report a 8938 because as you mentioned, the aggregate total of these accounts is less than 

            $100K.

        3.  Do not report your pensions on a 4852 form.  Instead report this income as other income by using this menu path.

• Go to  Federal Taxes -> Wages & Income>Less Common Income>Miscellaneous Income> Other reportable income.
• When it asks, "Any other reportable income?" say yes and then type in a description and the amount to report it on your tax return. 
• There are more than one box to report both pensions in this section.

       4. The interest and dividends are reported in the interest and dividends section of the Turbo Tax return under the        

           interest and dividend section of the Turbo Tax program. You don't need to do anything special for reporting the                        interest and dividends unless you paid foreign tax. Here when you get into interest and  dividend forms, there is a                    check box that says my Form has more info than just these boxes. Select it and you would  report the Foreign tax paid              in box 6 in the interest section and box 7 in the dividend section if you paid foreign tax on these distributions.

       5.  As far as the social security reporting, you must combine and report the amount that is listed in Box 5 of the                              statements.  In fact the IRS mentions Your gross benefits are shown in box 3 of Form SSA-1099. Your repayments               are shown in box 4. The amount in box 5 shows your net benefits  for 2022 (box 3 minus box 4). Use the amount in           box 5 to figure whether any of your benefits are taxable.

Reach out if you have additional questions.