Foreign social security benefits

[TaxMan60601]

Hi folks,

A quick one, ATX users orientated.

How correctly to report in the software foreign social security benefits in case there is no such line on Line 20 (1040) - SS Benefits Worksheet. Every attempt to enter them manually or attach an Itemized List to the field, leads to an overriding note in check return functionality. Actually, is it incorrect overriding a field in case there is no other option to use!?

Thanks for the tips in advance.

[Gail in Virginia]

I can't address the specific question as I have not had foreign social security benefits on a return, but it is absolutely okay to override a field if that is the only way to get the return correct. Overrides do not in and of themselves affect the ability to e-file.

[Guest Taxed]

>>> Overrides do not in and of themselves affect the ability to e-file. <<<

That is correct except certain tax prep software have strong error checking steps and it will not let you e-file until the error is corrected or the error checking is disabled. One such software is Taxwise. It is nasty when you have the "red" and you have to get rid of all the red before it allows the return to be e-filed successfully.

I ran into this on a partnership return (actually a LLC filed as partnership). I had to call them.

[jainen]

>>there is no such line on Line 20 <<

I don't understand your question. Foreign Social Security benefits are generally reported on Line 16. If and only if they are covered by a tax treaty, they are entered just like U.S. Social Security, no special line needed.

[TaxMan60601]

Sorry, missed to clarify. TP is dual US-IE citizen with tax treaty on foreign SS benefits claimed on the return. Position disclosed on form 8833, amount of benefits listed. I just can't find out how to report them on 1040, as this Line 20 worksheet begins with "1. Enter the total amount from box 5 of all your forms SSA-1099", etc .... and there is no line saying Enter the total amount from all your forms with Foreign SS benefits, you know.

Thanks for the feedback on overrides, ladies.

[kcjenkins]

If they are covered by a tax treaty, they are entered just like U.S. Social Security, on Line 1 of the worksheet. Whether you consider that an 'override' is up to you.

[jainen]

>>they are entered just like U.S. Social Security<<

That's what I said too, but seeing TaxMan's answer (and his profile) I think the client might reside in Ireland. Because he is an American citizen, he has to file a U.S. return on world-wide income. But the treaty says only the country of residence can tax Social Security. I guess he still needs to enter the income so he can claim the treaty benefit?