efiling form 4852 (Substitute W-2) (foreign pension)

Forum|Forum|5 years ago
March 20, 2021
2 replies
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Can my tax returns be e-filed if form 4852 (W-2 substitute) (for foreign pension) is included?

I am seeing conflicting comments about this.

I would rather pay taxes on my pension than have to paper file with form 8833 again. I paper copy mailed my 2019 taxes last September and they still have not been processed.

Thanks!

Not A Product Question

macuser_22

Alumni - Champ

@darla1 wrote:

Can my tax returns be e-filed if form 4852 (W-2 substitute) (for foreign pension) is included?

I am seeing conflicting comments about this.

I would rather pay taxes on my pension than have to paper file with form 8833 again. I paper copy mailed my 2019 taxes last September and they still have not been processed.

Thanks!

No but a 4852 substitute 1099-R per the IRS 1040 instructions that say to report it on the 1040 line 5a and 5b.

Only a 1099-R can put it there. In the 1099-R interview select a substitute 1099-R.

IRS instructions page 22.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Foreign retirement plans.If you were a beneficiary of a foreign retirement plan, you may have to report the undis-tributed income earned in your plan. However, if you were the beneficiary of a Canadian registered retirement plan, see Rev. Proc. 2014-55, 2014-44 I.R.B. 753, available at IRS.gov/irb/2014-44_IRB#RP2014-55, to find out if you can elect to defer tax on the undis-tributed income.Report distributions from foreign pension plans on lines 5a and 5b.:

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

ipc1

Level 5

Does the substitute 1099-R selection process result in the generation of the Form 4852?

macuser_22

Alumni - Champ

@ipc1 wrote:

Does the substitute 1099-R selection process result in the generation of the Form 4852?

Yes but why would you need a substitute?

Is there a problem with the original 1099-R that that the insurer refused to correct?

That is the only reason for substitute and you must include a statement of the error and that the issuer refused to correct it.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

linaj20201

Level 14

Yes you can. Here are the steps:

In 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
On the screen Tell Us Which 1099-R You Have, check the box I need to prepare a substitute 1099-R and follow the prompts.

As to the Federal ID, try entering nine 9s. If electronic errors occur due to 1099-R data entry, enter the pension under Miscellaneous income, see instructions below. As long as the IRS has the pension reported and included in total income, it is not problematic.

To your left, select Federal
From the top, select Wages and Income
Scroll down to last section -Less Common Income -select Miscellaneous Income, 1099-A, 1099-C- Start
Next screen, scroll down to Other Reportable Income- Start
Follow prompts

If it is not taxable to you, to enter the exemption, follow here:

report your full amount as instructed above. Then enter the treaty exempt amount as a negative amount (e.g. -5000) under Other Reportable Income as instructed above.
Download and fill in a Form 8833 from IRS to claim an exception. https://www.irs.gov/pub/irs-pdf/f8833.pdf

International tax treaty-related issues are out of scope for advice. You are suggested to consult a specialized professional for verification. This pension amount will show on line 5 of your Form 1040. If it's taxable, it will show on line 5b. If it's not taxable, it will show on line 5a for reporting purposes.

@darla1

darla1Author

Level 2

But then we are right back to where we started (and my original question): because if you include form 8833 the returns must be paper-filed with TurboTax. Is there any way to e-file a return which includes a foreign pension? Sorry to keep on about this but paper filing was a disaster for me last year. My 2019 return has still not been processed.

pmgallagher

Level 2

@linaj20201 wrote:

In the past, 99-0999999 was allowed for e-file, but not anymore.

In order to e-file, you have an option to enter under "Other Reportable Income". Here are the steps:

Except that will not put in on the 1040 line 5 as the IRS requires.

For 2021 return, it seems that using 99-9999999 generates an error loop and forces file by mail. Using 99-0999999 clears the error loop. The relevant pension income shows up (I think correctly) on Line 5b of the 1040. I am filing Form 8938 to report the UK pension that this relates for my return and reporting there that the relevant income is being reported at line 5(b) of the 1040. I don't want to efile, don't want to mess with Treaty elections. Hopefully this works.