You can switch to the desktop - here are the instructions to keep what you have started in TurboTax Online. If you have already paid for TurboTax Online, you will need to contact Support to get a refund. When you have the desktop, you want to look at Forms 1116 and or Forms 2555.
Options for avoiding double taxation
To avoid double taxation on Americans living abroad, the IRS gives them a choice:
- Deduct their foreign taxes on Schedule A, like other common deductions.
- Use Form 1116 to claim the Foreign Tax Credit (FTC) and subtract the taxes they paid to another country from whatever they owe the IRS.
- Use Form 2555 to claim the Foreign Earned-Income Exclusion (FEIE), which allows those who qualify to exclude some or all of their foreign-earned income from their U.S. taxes.
Using the FEIE and FTC together
If you choose to use the FEIE, you can then use the FTC on any income that exceeds the allowed exclusion amount. You can also use the FTC by itself.
Consult a tax professional if you want to switch from exclusively using the FEIE to exclusively using the FTC for all your income. This revokes your FEIE election, making it unavailable to you for 5 years unless you obtain IRS permission with a private letter ruling.
Regulations related to income earned abroad are complex, and many of these situations aren’t entirely covered in TurboTax. Our experts can’t give you specific advice about many areas related to foreign tax issues, but we can let you know which ones the product supports.
@64dancer
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
