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Level 1
April 15, 2026
Question

Deductions Related to Your Foreign Earned IncomeWhat should I enter here? Do I need to enter the tax I payed at the forein country?

  • April 15, 2026
  • 1 reply
  • 44 views
I declaired that I have a small business and also lived in a forein country for more than 330 days Now I'm asked about the deductions. It's already adding automaticly the tax I need to pay for 2025 to the IRS What else should I add? Should I add the tax payed at the foreign country?

1 reply

MarilynG
Level 15
April 15, 2026

If your reporting your Foreign Business Income/Expenses on Schedule C, you can claim a Foreign Tax Credit for tax paid in a foreign country.  Navigate to the Foreign Tax Credit interview in Deductions, and skip through the initial questions asking about foreign tax on dividends, until you reach a screen asking if you have other foreign income to report.  Choose 'general category income' and enter Country, the amount of income that you were taxed on by the Country, and the amount of tax you paid/date.  

 

If you were taxed on your Gross Business Income, you can enter related expenses that confirm expenses you entered on your Schedule C, but you are not required to.  If you were taxed on a different amount, just enter that amount. 

 

Here's more info on Claiming the Foreign Tax Credit.

 

@hydrotherap 

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