There is not a dollar for dollar credit for foreign tax paid on your return. The credit is limited to the amount the United States (US) would have charged on the same income, not what you paid in tax to India. However, there is good news.
The foreign tax credit can be carried over or back depending on what you choose to do.
- Foreign tax credit can be carried back one year or carried forward up to 10 years so you want to keep track of your credits and which year is used. See Topic no. 856, Foreign tax credit.
- Sign into your TurboTax account > Search (upper right) > type foreign tax credit > Click the Jump to.. link
- Follow all the screen prompts and instruction to enter your information.
- Claiming the Foreign Tax Credit (Form 1116)
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