Question

Have the screens changed for reporting foreign tax credit? The instructions don’t seem to work.

Forum|Forum|1 year ago
March 26, 2025
1 reply
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I have a pension being paid to me from a Swedish institution and I also have Swedish bank accounts that I have earned interest on.

I found the advice in your help section on how to report the pension income under “Other Taxable Income”. However the instructions for how to enter the foreign tax paid on the amount don’t work.

These are the instructions I found in this community:

"In the Deductions & Credits section, under 'Estimates and Other Taxes Paid', choose 'Foreign Tax.'

The first few screens are asking about Foreign Tax paid on 1099-Div or 1099-Int. Continue until you reach a screen asking if you have other types of foreign income to report. Choose 'General Category Income' and Continue.”

When I go to “Foreign Tax Credit” per the instructions, it only refers to 1099-DIV, 1099-INT, 1099-OID or K-1. (I think my financial institution in the US I reporting some foreign tax also), and I never get to a place where I can choose “General Category Income” or link to the pension amount I previously entered. Have the screens changed?

Please advise.

Also, my next step is to also enter the interest paid to me by my Swedish bank. Should I do that as “Other Taxable Income” as well?

R

rogge1722

To report the income from the Swedish banks, go to the wages and income section and under the 1099 area bring up a blank 1099-INT for each bank. Insert the payer's name, the amount in box 1 and the tax paid in box 6.

Then add up all the foreign tax paid on all interest and dividends and compare that to the foreign tax paid on the pension. The greater amount of tax paid will be used for Copy1 and the lesser for Copy 2 as Copy 1 should yield the greater tax credit. Advise when this is done.

B

bjornaAuthor

Thanks, I'll try that for the interest income, but my main question was about how to enter the foreign tax paid on the pension I'm receiving from Sweden.

B

bjornaAuthor

OK, I have added the interest from the Swedish bank (one each for my wife and I. I guess I could combine that since we're filing jointly?). They didn't withhold any tax on those as the amount is below the threshold for that in Sweden.

I've also added the amount I got as pension under Other Reportable Income in the Miscellaneous Income section (the last option on that screen). They did withhold tax for that one and I don't know where to add that in TurboTax.

Please let me know if that's the right place for the foreign pension or recommend a better place.

Note that we're not getting "standard" US forms sent to us from the Swedish bank or the Swedish payer of the pension.