What is my government pension from india counted as taxable income?
I receive government pension from india and pay taxes on it in india. I created dummy 1099-R based on @pk12_2's guidance. I entered government pension info in Box 1, 2a and Box 7- chose 7. However, I noticed when calculating Federal tax return this foreign pension is counted what looks like regular income:
Income
Total Income: xxxxxx
Deductions: 15,700
Taxable Income: xxxx
Taxes: xxx
Under double tax treaty shouldn't this income be not taxed in US, how do I indicate I already paid taxes on this.