Re: Pensions from UK question - US Tax Form
 

Pleased to be of service kind sir.

Re: Pensions from UK question - US Tax Form
 

What I've done in the past with TT is ignore the "1099-R Federal ID blank" error on smart check and put a line into the two explanation notes that are required for the 1099-R that the payer is a UK company and as such doesn't have a Federal ID number. With all that said, so far I can't file as according to TT Form 4852 has not been approved by IRS......but....I can find form 4852 on the IRS website for a rev: 9/2020.

Thanks all.

Re: Pensions from UK question - US Tax Form
 

I haven't tried to file yet as I'm still waiting for a couple of pieces of information to complete the return. We'll see what happens when those arrive about the 19th. Mind you I have faith that durham_lads workaround works.

Re: Pensions from UK question - US Tax Form
 

I've used Form 4852 (with Turbo Tax filing) for years.
Always enter 11-1111111 as the "...Payer's TIN" in Box 8
And have always been able to e-file my Federal taxes
However, California has never accepted e-filing of that form - so must mail my State taxes.
I'm hesitant to switch to the easy solution, and use Nutmeggars suggestion (post #2, above) - given that I file 4 of these forms every year and think consistency is probably a good practice.
The only thing is....
This year each of the 4852's has a RED WARNING on the upper right :

https://cimg1.ibsrv.net/gimg/british...9a8db75f13.png


***Does anyone else see that same red warning on the form when using Turbo Tax for 2020 filing? ***

As I mentioned above...e-filing Federal return has worked for me in past years....but each State has its own filing requirements - and they vary. So for anyone who is required to file State taxes - best check before deciding which of the 2 methods to use.

Re: Pensions from UK question - US Tax Form
 

MMcD, I’ve been doing that for over a decade with no problems. Initially set up that way by my accountant, nowadays DIY with TT.

Re: Pensions from UK question - US Tax Form
 

Not yet for 2020 - it'll be another week or so before I start loading all the data into Turbo Tax.

However I did get this last year. Eventually, with no change by me, other than applying a TT update, it went away. If I recall correctly it was because the final version of the form had not yet been signed off by the IRS. It was just a matter of being patient.

Re: Pensions from UK question - US Tax Form
 

I think you might be getting that warning on the form because the IRS has not updated that form for 2020 yet. I just looked at my TT file for this year and it has a warning not to file until the 4852 is ready for this year. But also has a warning saying it cannot be e-filed at all.

Re: Pensions from UK question - US Tax Form
 

That was also the advice given on the TT forums so you could overcome not being able to e file with substitute 1099s and form 4852, without faking IRS ID numbers. Which was why I did it that way.

Re: Pensions from UK question - US Tax Form
 

Thanks Nutmegger - Your accountant obviously knew what he was doing and chose the most straightforward path. When I initially struggled with TT, and how the heck to report foreign earnings in a system not originally set up to easily accommodate foreign income reporting - I came upon the 'workaround' method. It's a pita - but I'll stick with it to be consistent

Many thanks!
That's a relief. It's what I was wondering / hoping..
I dipped into Turbo Tax much earlier this year ( stuck in house :tape: , Covid confined, climbing walls, time on hands. ..)
Hope the four 4852s already completed shed their red warnings in a few weeks.

As I recall...It always says that for some reason. Nevertheless - I've ALWAYS e-filed Federal return. Not the State return ( which must include a copy of Federal ) So Lansbury - if you do switch to this method and save yourself a trip to the post office - you might want to first be sure you can also e-file your Oregon taxes - if they also include the 4852s

Re: Pensions from UK question - US Tax Form
 

Search as I may on Oregon's tax web site I cannot find out if I can e-file a 4852 or not. Having tried both ways, Schedule 1 or substitute 1099 in TT, the tax works out the same, as would be expected. So I guess it is sticking with the Miscellaneous Income as I have in the past. It might not be as per 1040 instructions but it is what TT recommends and is the easiest.

Re: Pensions from UK question - US Tax Form
 

I'd recommend what I'm doing (assuming you have already gone to the trouble of preparing the 4852s) - leave them in your saved TT pdf file.
As soon as Turbo Tax starts to accept completed returns for filing in a few weeks - click on the FILE tab at the upper right.
You won't have to actually file, but if you initiate the process TT will let you know whether or not you'll be able to e-file - if you select that that's what you prefer to do.
Then, if you find Oregon WON'T accept e-filing because of that form, you'll have 2 options:
A) e-File Federal Return and Print out / Snail Mail Oregon Return (that's what I do every year with my Federal and CA. returns
or...
B) Go back to the TT FORMS view, and remove both the 1099-Rs and the associated 4598s.
Submit a Schedule 1, Line 8 Form in it's place (just as I think ? you've been doing in the past)
E-file the whole shebang

DONE! :beer:

Re: Pensions from UK question - US Tax Form
 

Thinking about taking distributions from my UK pension at age 55, as this is allowed, but I know IRS impose a 10 % penalty on 401k/IRA early distributions before age 59.5. When I report this income on my US return is it going to be subject to the 10% penalty too?

Re: Pensions from UK question - US Tax Form
 

For some reason I've only just seen this post. Thanks MMcD for the way to get TT to check Oregon e-filing. I'll give that a try when I ready, and if they don't I think I'll go back to Schedule 1. Using Schedule 1 hasn't been a problem in previous years, and e-filing gets the refund quicker. I had a big dental bill in 2020 so the anticipated refund is quite large and I'd like it ASAP.

Re: Pensions from UK question - US Tax Form
 

No 10% early withdrawal penalty from the IRS for taking your UK pension at age 55. I’ve been there and done that.

Re: Pensions from UK question - US Tax Form
 

Thank you - I thought that may have been the case!