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Polish Pension » From: Rochester, NY Dear TaxMama: Last year my parents received monthly pension distributions from Poland. my parents are both US citizens and the payments are for when they lived in Poland before 1978(year when they came to USA). How do I treat and report these distributions on their Federal return ? The amounts received were $1800 and $950. There was also tax taken out for both of these amounts in Poland. Thank you Mike Dear Mike, You'll be reporting the income as pension income, on Form 1040 line 16a or other income, whichever you chose. And you will be able to use Form 1116 to deduct the foreign taxes that were withheld. It's a little confusing. At least for the first year, you may want to get a tax pro to help you. After that, you might be able to do it yourself. Now, you may want to check with the state of NY to see if they also give you a credit for the Polish taxes paid. I am not sure. I know California does not give you credit. go figure! Best wishes, Eva Rosenberg Your TaxMama

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