KarenJ
Intuit Alumni

Get your taxes done using TurboTax

If you paid foreign tax on your NZ income, you can input your wages as foreign and utilize the foreign taxes to help offset double taxation.  You will need to use a currency converter to enter your NZ wages and tax as USD.

Please see attached link https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates

In the search box in the upper right-hand corner enter the words foreign tax credit.The first answer is 'Jump to foreign tax credit" and click on the link

You will need to go through the screens and answer the questions.  

Wages are considered General category income.

You will need to input whether you are using the "paid" or "accrued" method for foreign tax.  If you paid your NZ tax in 2017, then you would choose the paid method.  If you are paying the NZ tax in 2018, then you need to choose the accrued method.  Once you use the accrued method, you must use this method going forward.

Please find attached the instructions for Form 1116, Foreign Tax Credits  Form 1116 instructions

 


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