How do I report UK pension income on Form 1040 line 5b?

[david3]

I have seen community answers that advise to enter foreign pension on line 8 Other Income. However, in order to receive the state exclusion the pension has to be reported on either line 4b or 5b.

There doesn't appear to be a way to enter the UK foreign pension directly on line 5b, or a manual section of Form 1099-R. The only way I can figure out how to enter it on line 5b is to report it on the Certain Canadian Registered Retirement Plans Worksheet.

I'm sure the client will be confused when they see this worksheet in their tax return. And I don't want to tell them that my tax software doesn't handle foreign pension other than Canadian pensions.

Doesn't PS have a worksheet to enter pension income from other countries? If not, how do I enter the UK pension in PS so that it is reported on line 5b and therefore, meets the state requirement for pension exclusion?

Thank you.

[jeffmcpa2010]

I certainly do not know the answer of the question I am about to pose, but it is food for thought.

Do you know if your State's exclusion does in fact apply to Non-US pensions?

[david3]

The state instructions state that the pension has to be included in federal taxable income and be reported on line 4b and 5b of the federal return. It doesn't mention whether foreign pensions are not eligible for the exclusion.

The state is Colorado, so if anyone knows otherwise, please let me know.

Also, I still need to know how to report the UK pension on line 5b without having to complete the Canadian retirement plan worksheet.

Thank you.

[BobKamman]

DR 0104AD, Line 19

[david3]

Thanks, Bob.

I'm also wondering if I could just report the foreign pension on the "Other pension and annuities qualifying for Colorado exclusion" line 4 of the Pension and Annuity Exclusion Worksheet.

However, my concern is that the CO instructions for the pension exclusion states that the pension has to be reported on line 4b or 5b on the federal 1040. So my question is how to report the UK pension in PS so that it is reported on line 5b? 

There is no line item for any retirement worksheets that will report foreign pension income other than the Canadian retirement worksheet. You would think PS would have a worksheet option to report pensions from other countries.

The solutions from the Community say to report it as Other Income on the 1040. However, I can see the client getting a letter from the CO Dept. of Rev. denying the pension exclusion reported on 104AD since that amount doesn't appear on the TP's 1040 line 5b.

 So my question is how to report foreign pension income in PS so that it appears on the 1040 line 5b.

Thank you.