it depends. Article 22 of the UK/US tax treaty says "Items of income beneficially owned by a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention (other than income paid out of trusts or the estates of deceased persons in the course of administration) shall be taxable only in that State".
Since she is a resident of the US for tax reporting purposes in 2024, the income should only be taxable in the US. If the income was reported and taxed in the UK, you may claim a foreign tax credit on your return.
So you would report this as other income in the manner you mentioned above. If she reported this income in the UK and paid taxes on this income, you may claim a foreign tax credit in 2024.
- 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 General category income
- Next add a country pick UK.
- Finish out the section.
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