If you have a foreign earned income exclusion on Form 2555, then Form 1116 cannot also be used on the same income. If you are in the military, then be sure to identify in the My Info section under Other State income section, Where you are Stationed as Foreign or U.S. Possession.
For Form 2555, which is for the Foreign Earned Income Exclusion, enter the gross amount earned before any foreign taxes paid. To review this area of your return, follow these steps:
- In the search box, enter foreign income.
- Click the Jump to link in the search results.
To return to Form 1116, follow these steps:
To do this in TurboTax, follow these steps:
- In the search box, enter foreign tax credit.
- Click the Jump to link in the search results.
- Going through the interview, at No Other Income and Expenses, answer No and Continue and Continue.
- At Choose the Income Type, answer from the 7 categories listed and click Continue.
- This will get you to the Country Name screen to select the country from the dropdown menu and later make any other adjustments.
For more details, see:
Filing IRS Form 1116 to Claim the Foreign Tax Credit - TurboTax Tax Tips & Videos
Filing Taxes While Overseas
