How is foreign pension reported with no 1099 form?

Forum|Forum|1 year ago
February 25, 2025
2 replies
0 views

I see suggestions on reporting foreign pension as "Other income". Will the interview process enable me to also report the foreign taxes paid on that income or will I need to claim a foreign tax credit in a different way?

I am using the desktop version of Turbotax Home & Business 2024.

Thank you very much for any recommendations!

TurboTax Home & Biz Windows

ThomasM125

You need to report pension income as such, it should not be reported as "Other" income. You can do this in TurboTax by entering a substitute Form 1099-R.

To enter a substitute form 1099-R in Turbo Tax Online follow these instructions:

Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
Choose Add (Another) 1099-R
Choose I'll type it in myself
Choose the source of your 1099-R form
Enter your pension income into the Form 1099-R entry screens
When you come to the screen that says Do any of these situations apply to you? Check the box that says I need to file a substitute 1099-R and follow the instructions

For the foreign tax credit, find Estimates and Other Taxes Paid in the Deductions and Credits section and choose Foreign Taxes. Work through that section and indicate that you want the credit as opposed to a deduction, as it will probably give you the better benefit. Choose the "no" option on the page that says No Other Income or Expenses. Choose Passive income for the type of income. Choose the country you earned the income from and enter a description of the income and the amount earned. Enter the foreign taxes paid when instructed to do so. You probably don't need to enter much else on the rest of the screens but you can enter anything that you think applies to you. You will see your foreign tax credit listed on line 1 of Schedule 3 Additional Credits and Payments.

You will only get a credit to the extent you have taxes on foreign income in the current year. Any unused credit can be carried back one year or forward ten years.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

juham2013Author

Hi,

I reported my passive income along with taxes I paid to a foreign country on that income (pension). However, when I look at the summary of my tax returns (I haven't yet e-filed), I see that a portion of the taxes I paid to a foreign county was disallowed. Does that mean that the portion that was not allowed carries over to tax year 2025?

Look forward to comments on the aboe!

Thank you!

Alfreddo

Hi,

I have the same situation.

I've followed all the appropriate steps but the system never asks me to enter the amount of foreign tax paid in 2024. The only option allowed is revisit tax credit carryovers (2023). It goes in circles. There was however a question on the 1090DIV or INT section asking about foreign taxes, but I assume that this applies only to that catgory of income and, anyway, it would be impossible for me to determine how much applies to that income. I am gong nuts.

Fred