Lin_NJ

I am now in receipt of my UK STATE pension. Does anyone know on what line should I enter this on my IRS 1040?

thanks in advance.

Nutmegger

I have always used the "other income" line, with the description "UK pension" -- think it is line 8 these days.

SanDiegogirl

We use Turbo Tax and have always put it under Other Income and then 'other' - item z. Description UK State pension.

Expatrian

As others have noted in other threads it can sometimes be beneficial to report federally under “Pension Income” if your state does not tax pensions. Otherwise, it probably doesn’t matter.

Lin_NJ

Thanks all, I will consider those options.

USADragon

I use line 5a/5b for a small pension we receive from a deceased spouse. For us the whole amount is taxable on the Federal return but not on the state return. I'm not sure they care too much as long as they get their take. I used to file a form 4852 to report it, but dropped that this year so I could use the IRS fillable forms. Refund was approved with no issues.

X75

This works fairly easily. However I have read comments from expats that spoke to the IRS that they were told it is incorrect to report pensions in that "Other" section. IRS agents said Form 4852 was the correct method. I am researching this just now. Turbo Tax folks seemed confused about the options as TT doesn't seem to have a specific prompt for foreign pension handling. My concern is that I am not drawing down my IRA at this time but I am receiving a UK private and a UK old Age pension. New York State has a $20k tax free allowance for pensions but using the "Other Income" box on the 1040 does not automatically flag up that this is a pension and so the State doesn't see it as a category to utilize that 20k allowance.

USADragon

I don't think it matters that it's a foreign pension. You can tell Turbo Tax that you received pension income but didn't receive a 1099R. It will ask you if you want to create a substitute 1099R, when you answer yes, the form created will be the 4852. Then the amount will be entered on line 5. If no tax is withheld in the UK, it's all taxable on your federal return. Even on a paper return 4852 is simple. I've always done it this way up to this year when I reported on line 5 but didn't bother with the 4852.

durham_lad

Exactly what I do.

X75

What did you say, if anything, on Line 10 of the form?

durham_lad

Nothing, left it empty, if you are referring to line 10 on the 1040.

If you are referring to the 4852 I simply state that the pension comes from a foreign company who do not issue USA style 1099R forms.

X75

No Lione 10 on Form 4852.... "10. "Explain your efforts to obtain Form W-2, Form 1099-R (original or corrected), or Form W-2c, Corrected Wage and Tax Statement."

X75

I was just on the line with Turbo Tax a hour ago and the guy was trying to take me through the form. He drew a blank because it asked for an Employer TIN # which the UK Government / the Company Pension scheme do not posses. He made some comment about being told not to make up a TIN by the IRS. Thats when he said just to enter it under miscellaneous Income in 1040 line 21 as "other". We did that and it took fine but prompted my original question on this thread.

durham_lad

as for the TIN I just put 99-1234567. Done this ever since I started receiving a UK pension 15 years ago.

X75

Ah ok folks! I shall probably just do that then. I have found a couple more references in Tax about taking this approach. They wont specifically ask you to invent the TIN yet do still recommend you take the approach you are talking about. It is frustrating though to get DIFFERENT opinions from Turbo Tax folks when all they need to do is configure the tool to guide you through a simple sequence. I will take no more of your valuable time. Thanks for the quick responses!!!!!!!!