No, you would not check that you worked outside the US. You were physically present in the US when you performed the work so you are not considered as working outside the US even though your employer was outside the US.
You can use the Foreign Tax Credit for paying taxes to another country on the same income. It has to be a tax imposed on the income.
Refer to this IRS page about foreign taxes paid.
Where do you enter this credit?
Both the credit and the deduction are entered in the same place. Here's what you do:
- Make sure you've entered all your foreign income.
- From within your return, search for foreign tax credit and select the Jump to link in the search results.
- Answer Yes to Did you pay foreign taxes in 2020 or have credits to use from a prior year?
- Follow the instructions to get the credit or deduction.
In most cases, taking the credit works out better than the deduction. We'll help you decide which one's best for you when you go through this section. If you choose to take the credit (most people do), we'll attach Form 1116, Foreign Tax Credit if your situation requires it.
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