Author Topic: Reporting pension contributions to IRS  (Read 233 times)

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Offline stargazer

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Reporting pension contributions to IRS
« on: March 18, 2017, 06:21:31 PM »
So, my DH's employer contributes money to a pension for us. My understanding, based on other posts on this board, is that we can either NOT include this money as income now, in which case it will be taxed in retirement. Or we can include it as income, and then the contributions (not growth) will be considered a tax-free basis to the IRS, if we retire there. 

So I was fiddling around with this on Turbotax, and added the amount to our income, and it didn't change anything as far as what we owe/are owed back. We don't use the FEIE, we take the FTC for everything.  So sounds like declaring it may make sense, if it doesn't decrease our IRS refund one bit? And if I declare it, how is it labelled? I use Turbotax. 

Offline discly

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Re: Reporting pension contributions to IRS
« Reply #1 on: March 19, 2017, 05:06:28 PM »
I would just show it as additional wages because it is received as compensation for services being performed. However, I think some others on this board might suggest it should be pension income.

Offline stargazer

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Re: Reporting pension contributions to IRS
« Reply #2 on: March 19, 2017, 05:31:43 PM »
I would just show it as additional wages because it is received as compensation for services being performed. However, I think some others on this board might suggest it should be pension income.

That's what I was thinking. And I'll need to keep good records of what those contributions were each year, I assume using the exchange rate from that year.

Offline discly

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Re: Reporting pension contributions to IRS
« Reply #3 on: March 19, 2017, 10:00:28 PM »
Yes, it will be very important to keep good records because you will need to prove to the IRS, perhaps many years down the road, that the income on your form 1040 for that year included the employer contributions to the pension.