@shansmw To file as a US resident return, you must report all your world wide income according to this Turbo Tax source. This means the full redundancy payment.
As you know, the foreign income exclusion will exclude $108,700 of your foreign earned income. You also have an option of claiming a foreign tax credit in lieu of the income. You can't take both unless your foreign earned income is over the exclusion threshold.
For an example, if your income is $158,000, then you can claim the foreign tax credit based on $49,300 worth of foreign income ($158,000-$108,700). Here you can report the taxes paid to the UK and Turbo Tax will determine your foreign tax credit based on the data you record in the return. If you decide to claim a foreign tax credit, you may do so through the following steps.
- Click on federal> Deductions and Credits at the top of the screen
- Select I will choose what I work on
- Scroll down to Estimates and Other Taxes Paid
- Select Foreign Taxes and then select start
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
