Get your taxes done using TurboTax

Once you reported the income information, here are the steps to claim the foreign tax credit.

1. Go to Federal
2. Deductions and credits 
3. Estimate and other taxes paid 
4. Foreign Tax Credit>start or revisit
5. When it asks We just need to check if you have any uncommon situations indicate I paid foreign taxes on income I earned while working in another country. 
6. At some point in the interview, it will ask if you wish to take a deduction or a credit. If you are able to itemize deductions, you may consider taking the deduction. otherwise, take the credit.
7.  Navigate and record the entries that the program asks for and when you reach the page that mentions Foreign Tax Credit Worksheet, this is where you take notice.
8. The first that you will be asked is what category of income is it, you will say Passive income.
9. Next screen will say Country Summary, select add a country 
10. When it says Other Gross Income - XXXX, Here you put in the Gross Amount you earned in that country. 
11. Then you will navigate through the screens until you come to a screen that says Foreign Taxes Paid - XXXX, here is where you record the amount paid under Foreign Taxes.
12. Finish out the section. 

If you discover that you are only getting credit for $691 or less than $1951, this may be the actual credit you are entitled to this year. Your Foreign Tax Credit is a non-refundable credit that cannot be more than your US tax liability reported on line 16 on your 1040. If the foreign ax exceeds your US tax liability, then the remainder of the credit will be carried forward to offset any other foreign income for a period of ten years.

@asark391