Reporting your foreign pension using our software is simple; follow the steps below.
Here’s an overview of what we’ll cover—click any section to jump ahead.
- What is a Foreign Pension?
- Reporting Foreign Pensions
- Important Notes on IRS Forms 3520/3520-A
- How do I add another pension entry that is not employer-provided?
What is a Foreign Pension?
Foreign Pension is a retirement plan earned from employment outside the United States. For US tax returns, foreign pensions can be complex due to IRS reporting requirements, worldwide income rules, and potential tax treaty benefits.
Reporting Foreign Pensions
Usually, in the Foreign Employment Compensation section of our software, we ask you if you have a supplemental pension on your salaried income. If you do, we ask you more about the company-funded pension plan in the Pension Section!
For reference:
After completing the Foreign Employment Compensation section, you will proceed to the Pension section.
Important Notes on IRS Forms 3520/3520-A
Please ensure that all mandatory fields are filled out based on the information you provided in the Foreign Employment section. If you have an additional foreign pension, include those details as well. This will allow the software to determine whether you are required to file Form 3520 or Form 3520-A.
Note: Some foreign pensions require Foreign Trust Reporting by the IRS (Form 3520/3520A), which costs additional preparation fees of $329.
Please note: When you select that you have a pension plan under Foreign Employment Compensation, the system will automatically create an entry in the Pension section on the left navigation pane. You do not need to add another pension entry, as this will cause duplicates.
How do I add another pension entry that is not employer-provided?
- Click “Add another Pension” to enter the additional details!
- This will allow you to enter information into a blank field.
Additional Tip: Complete the Pension section before proceeding with your payment to avoid unnecessary charges, especially if Form 3520/3520-A is not required in your case.
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