Thank you! I am considering Italy.
So if I understand…
My SSA will prob not be taxed on the italian return, but will on the US return.
My dividends and interest, capital gains, and retirement annuity will be taxed on the italian return. I also include them on the US return as income. But if I paid $1000 in taxes on them in italy, I enter that as a foreign tax credit and if my tax bill on these specific items in the US would be $900, I would pay zero to the US on them (and the extra $100 can apply to the next year).
If on the other hand Italy collected $700 in taxes on the annuity or divs/gains, and the US amount on those categories would be $900, I would owe the US the additional $200 plus my social security taxes?
I def plan on getting an expat tax consultant but just want to be sure I wont suddenly have a huge additional tax bill!
