Tax free foreign pension

Forum|Forum|3 years ago
March 11, 2023
1 reply
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I have a couple of small foreign pensions for which no local income taxes are due because they are below a taxable limit.

I would imagine that I have to report them into my US tax return, but will they be taxable in the US?

That would be unfair if they do!

TurboTax Home & Biz Windows

Best answer by mglauner

Yes, as a US citizen all your world-wide income is reported. For most folks receiving a Foreign Pension, they take a Foreign Tax Credit which offsets the US tax they are assessed on the income.

It may be that your small pensions won't affect your tax situation much, after the Standard/Itemized Deduction is applied.

To report Foreign Pension Income:

Under Wages & Income, scroll all the way down to Other Miscellaneous Income, 1099-A..
On the next screen, scroll all the way down to Other Reportable Income, Other Taxable Income
Enter a Description and Amount

@Mizio

mglaunerAnswer

Yes, as a US citizen all your world-wide income is reported. For most folks receiving a Foreign Pension, they take a Foreign Tax Credit which offsets the US tax they are assessed on the income.

It may be that your small pensions won't affect your tax situation much, after the Standard/Itemized Deduction is applied.

To report Foreign Pension Income:

Under Wages & Income, scroll all the way down to Other Miscellaneous Income, 1099-A..
On the next screen, scroll all the way down to Other Reportable Income, Other Taxable Income
Enter a Description and Amount

@Mizio