LindaS5247
Expert Alumni

Get your taxes done using TurboTax

To enter your income under foreign income in TurboTax: 

 

  • After sign into your account, select Pick up where you left off
  • At the right upper corner, in the search box, type in foreign income and Enter 
  • Select Jump to foreign income 
  • Next screen, Did You Make Any Money Outside the United States? answer Yes 
  • On-screen, What Form(s) Was Foreign Income Reported On ? make your selection and continue to proceed

Your income tax paid would be what you paid in Canada for income tax on your tax return.  The amounts withheld from your wages would be considered "income tax withholdings".
 

To claim the foreign tax credit:

 

  1. Type foreign tax credit in Search (magnifying glass) in the upper right corner
  2. Select Jump to foreign tax credit
  3. Complete the screens to claim either the credit or deduction
  4. When you reach the screen Do You Want the Deduction or the Credit? select the option you prefer for your situation
  5. If you select Take a Credit:
    • Select Continue on the next screen, then select No to fill out Form 1116
    • When you reach the screen Country Summary, select Add a Country
    • Answer the questions about your foreign income, taxes, and expenses on the following screens
    • When finished, you'll be taken back to the Country Summary screen. If you have income from other countries to enter, select Add a Country. Otherwise, select Done
    • Answer the questions on the following screens until you reach your Foreign Tax Credit Summary. If you’re finished with this section, select Done
  6. If you select Itemized Deduction:
    • Enter your foreign taxes paid on the next screen. These should show up in the Deductions & Credits section of your tax return, under Other Deductible Expenses

In most cases, taking the credit works out better than the deduction. We'll help you decide which one's best for you when you go through this section.

If you choose to take the credit (most people do), we'll attach Form 1116, Foreign Tax Credit, if your situation requires it.


Click here for information on entering your T-4 in TurboTax.

 

Click here for information regarding foreign tax credit in TurboTax.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"