@jherna13 what I get from your post -->
1. YOU a US person ( citizen ) have a tax home in Netherlands and have been there since at least 2023 ( when did you start your foreign tax home ? generally the first full day in ) a foreign land.
2. Your spouse is s US person ( please confirm / correct ).
3. In 2023 you used FTC rather than FEIE --- please can you tell why you chose this path
4. In 2023, since all your active earnings were foreign, the form 1116 with limitations still resulted in 100% Foreign Tax Credit -- with no carry back/forward
5. In 2024 your earnings situation same with the exception of added income due to RSU vesting. Therefore TurboTax is showing a tax due ( for US return). Please can you tell me --
(a) is the RSU from a local or US entity ?
(b) what is the quantum of the income being declared/recognized ( the diff between FMV and the basis of the shares vested in 2024 )?
(c) Has NL taxed the vested & therefore "imputed" income ?
(d) how are you reporting this "vesting" caused income -- part of active income, investment , "other" or what ?
(e) are you paying FICA or participating in NL FICA equivalent ?
6. Your comment about where to enter active income for purposes of FTC, requires that I understand how you filed for tax year 2023. How did you show your active income -- as other , business income or what ?
Sorry for all these questions but to me these need to be considered for an understanding of the situation. I will circle back once I hear from you --yes ?
Grusse
