Hi,
My wife and I are both US citizens. We are preparing our taxes as married filing jointly using TurboTax. My wife moved back to our home country in Europe in the middle of 2019 and I stayed for work in California and am still here.
Both my wife and I have US bank accounts, some of them being joint. My wife paid taxes in our European home country on the interest earned from the US bank accounts (the same way US citizens are required to pay taxes on foreign bank accnts here in US). She doesn't have any other income both here and over there.
Of course, we also got 1099-INT from the bank to report on our US tax return. Doing so IRS will charge us tax on the interest. Now, obviously we don't want to be charged twice on the same interest - once in US and once in Europe.
What is the proper way to report the taxes paid in Europe on the same US bank interest and avoid that double taxation?
Also, one other related question. For the purposes of tax return for 2021, do we need to show the exact date she left US? TurboTax doesn't seem to accept dates prior to 01/01/2021.
Thanks in advance
