If you received a foreign pension, you first must determine whether the foreign pension is taxable. TaxACT has no process to determine this; please review the IRS links below to make this determination:
Once you determine the amount of foreign pension that is taxable, there are two places you can enter the pension amount. In a few instances (based on treaties) the pension benefits can be entered as Social Security benefits. However, the most common place to enter foreign pension benefits is on Form 1040 FEC Foreign Employer Compensation and Pensions
To enter the foreign pension benefits in TaxACT on Form 1040:
- From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
- Click Retirement Plan Income to expand the category and then click Foreign pension distributions
- Click Add to create a new copy of the form or click Review to review a form already created
- The program will proceed with the interview questions for you to enter or review the appropriate information
On the screen titled Foreign Employer Compensation and Pensions - Payer's Name, you must enter the name of the foreign country in the box Payer's Country Code.