Yes, miscellaneous income is the most suitable way to report this income. Rather she received the green card or not, she's a US resident because she resided in the US more than 183 days. She cannot opt to be a non-resident for the entire year.
To claim the Foreign Tax Credit:
- Go to Federal
- Deductions and credits
- Estimate and other taxes paid
- Foreign Tax Credit>start or revisit
- As you go through the screens, when it asks "Tell Us About Your Foreign Taxes" select none of these apply.
- When it asks if you wish to take the deduction and credit, take the credit.
- Continue through until you reach a screen that says "No other income or expenses" Say no
- Continue through until it asks the income type, say Passive Income
- Next add a country pick Hungary
- Other Gross Income say Maternity Allowance and the Gross Amount of the benefits paid
- Continue through the interview until it asks for the foreign taxes you paid, here record the amount.
- Now you are done reporting the foreign taxes. Just keep going through the section without making any more entries. You will have finished reporting your gross income from the sale and the foreign taxes paid.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
