Where do I specify foreign taxes withheld on foreign Social Security income? I don't see a way to do this on substitute form 1099-R.

Forum|Forum|6 years ago
January 26, 2020
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TurboTax Online

Best answer by mglauner

Hello,

Unfortunately when I use "Take a Credit" and add "Netherlands" as a country, the software does not offer me the "substitute 1099 R" form that I filed for the Dutch Social Security...

It shows me only some entry associated to some investments that reported a small amount of Foreign Tax paid...

How do I associate the Foreign Tax Paid for the Dutch Social Security declared on the "substitute 1099 R"??

Thanks for the help!

Don't try to use a Substitute 1099-R to report your Foreign Pension Income. You won't be able to Efile without an EIN, which you don't have.

Report it as Other Taxable Income, then claim the Foreign Tax Credit.

select Federal
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
Enter description (foreign pension) and amount as Other Taxable Income

In the Foreign Tax Credit section, there are five kinds of income to associate your tax paid with. Choose 'passive category' or 'general category' as the income type you are claiming the credit for.

Here's more info on Claiming the Foreign Tax Credit.

@DNN

linaj20201

To enter a foreign social security income or pension in TurboTax online, here are the steps:

Sign in to your TurboTax account and select Pick up where you left off
At the right upper corner, in the search box, type in "1099r" and Enter
Select Jump to 1099r
Follow prompts
On-screen, Tell Us Which 1099-R You Have, check the box you need to create a substitute 1099-R to continue. See the image below

-As to the Federal ID, if there is no identification number provided, enter nine 9s. If electronic errors occur due to 1099-R data entry, enter the social security income under Miscellaneous income, see instructions below. As long as the IRS has the social security reported and included in total income, it is not problematic.

To enter information under Miscellaneous Income, follow the steps here:

Sign in to your account, select Pick up where you left off
To your left, select Federal taxes
From the top, select Wages & Income
Scroll down to Less Common Income ( very last section on the screen)
Select Miscellaneous Income, 1099-A, 1099-C- Start
Select Miscellaneous Income- Other income not already reported on a Form W-2 or Form 1099- Start

gvanmoorAuthor

Thanks LinaJ2020 for your quick response. However, it only explains how to enter foreign social security income, something I know how to do and have done in past years. My question was how to report the *foreign tax* withheld on the foreign Social Security income. This was not an issue in the past, since they started withholding tax in 2019.

ThomasM125

I don't see why you would need to report foreign tax withheld on your tax return, unless you are over the social security tax income level, or consider it foreign income taxes and want to get a credit for it. If so, you can enter it separately in the foreign tax credit area of TurboTax.

Go to the "Foreign taxes" section under "Estimates and Other Taxes Paid" in the "Deductions & Credits" section of TurboTax to see if you qualify for a credit for foreign taxes paid.

Please keep in mind that social security is not a tax, it is a contribution to your retirement account with the government.

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Anonymous

what country because the US has tax treaties with certain countries that exempts the foreign social security from taxation in the US?

gvanmoorAuthor

The country in question is the Netherlands, and there is indeed such a tax treaty. I am in the process of making sure this treaty applies to my particular case. I decided not to bring this up in my original question since this is not a Turbotax specific issue. But good point, I appreciate you bringing it up.