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To foreign pensions on a 1040 I use the other income section.
Thank you. I was thinking I should use the Other Income line since since both lines (Pension & Other Income) are taxed the same.
Lacerte and Ultra-Tax both allowed the use of their Pension input screens and provided a button to indicate it as Foreign Pension Income, which grayed out the EIN and Foreign Address fields. This enabled the income to be reported on the 1040 Pension Income line.
The US and UK have a tax treaty that in part says if the pension is a government pension it is taxed in the same way that the US taxes Social Security. You would need to put the income on the SS benefits worksheet, and then put a negative amount in other income with statement "UK pension offset" or something similar. I believe you need to down load form 8833, and attach as a pdf. Might not need form if pension is under $10,000, but not sure you will have to research.
Maybe @itonewbie will weigh in
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