Foreign Pension Income

[s_samarakoon]

I started receiving a small pension income from an account I had in the UK. They do not provide a 1099R.

Where do I enter Foreign Pension Income in TurboTax? 
Their instructions say to report Foreign Pensions on 1040 lines 5a and 5b.
I do not see a Form 1040 in TurboTax.
If I were to report this in 1099R what do I enter for the EIN?
Do I enter the amount in 1 (Gross Distribution) or 2a (Taxable amount)?
What do I select in BOX 7?

[RobertB4444 · Accepted solution]

You are going to tell the system that you are preparing a substitute 1099-R.  In box 1 you would enter the total amount that you received.  In box 2a you will enter the total amount minus any direct contributions that you made (for a pension box 2a and box 1 are usually the same).

Then in box 7 you will enter code 7 for a normal distribution.

If you paid any taxes in the UK on this amount then you'll enter that as a foreign tax credit in the deductions and credits section.  If not then all you need is that substitute 1099-R.

@s_samarakoon 

[G-day]

I also receive a UK Pension and read the advice to create a Substitute 1099R. The next issue is that TurboTax has a 'Nonstandard or Substitute Form 1099R Smart Worksheet', which when I elect to treat the 1099R as a Substitute tells me to check a box to generate Form 4852. Form 4852 requires me to call the IRS for them to try to obtain the true 1099R. I called the IRS and their Tax legal department agent told me they are not able to discuss foreign income by phone. Any advice how to deal with this? Can i simply not check the box to create Form 4852?

[RogerD1]

Yes, you should go ahead and file the substitute 1099-R and create the Form 4852 since a UK entity would not be issuing a 1099-R to you.  The IRS won't be giving you the Form 4852 to use since they are only issuing that for American Entities.

You can follow these steps to fill out the information in the 1099-R section of TurboTax.

1. In the Income section, go to Retirement Plans and Social Security section and click the Start (or Update) button to the right of IRA, 401(k), Pension Plan Withdrawals.
2. Click Add a 1099-R
3. Click Skip Import at the bottom of the next page
4. Click on the 1099-R tile at the upper left, then Continue.
5. Enter the 1099-R provider info.  Your UK plan provider with not have a Payer's TIN, so you can just enter 99-9999999 there.  Click Continue.
6. Enter the total distribution in US Dollars in Box 1 and the Taxable amount in 2a - these will likely be the same amounts
7. Enter a Distribution code of 7 in Box 7
8. Click Continue at the bottom of the page
9. On the next screen - it is not an IRA, so click No, the box is blank
10. Click None of the above for Where is your distribution from?
11. It will be a Qualified plan since it is a pension
12. You can click "I Need to file a substitute 1099-R" on the next screen
13. On the next screens you will give details about how to calculate the substitute amounts, efforts you made to get a 1099-R 
14. You can skip printing Form 4852 if you plan to e-file your return.
15. On the next screen, you didn't roll over or convert the money
16. For Periodic Payments click Yes if you received the payments on a regular basis.
17. Click Yes or No as appropriate for "Did you start getting these payments in 2025?"
18. For Annuity Information click if the total amount was used to determine the the tax you paid on it.